Conflict, Political Structure and Economic Growth in Dual-Population Lands

Amnon Levy and João Ricardo Faria

Economics Working Papers from School of Economics, University of Wollongong, NSW, Australia

Abstract: The optimal consumption growth rate for a group in a strictly political federation in a dual-population land is lower than that under partition if the group is wealthier and has a lower population growth rate than its counterpart. Even in such circumstances the group may economically benefit from joining a federation that facilitates technological transfer as long as the group’s initial technology is inferior to the hybrid. The group’s optimal consumption growth rate during a civil war is larger than those under partition and a strictly political federation if its rival’s warfare is mainly aimed at inflicting casualties.

Keywords: conflict; political structure; economic growth (search for similar items in EconPapers)
JEL-codes: D72 D74 D90 J19 P16 (search for similar items in EconPapers)
Pages: 26 pages
Date: 2002
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