Dynamics and Time Scope of Post War Recovery Required for Compensating Civil War Economic Losses
CESifo, Munich, 2013
CESifo Working Paper No. 4361
Civil war is often caused by poverty, and further demolishes existing capital. Such a vicious circle is detrimental for economic development of countries experiencing civil war. Civil war may also contribute to creative destructions of traditional economic, social and political system, leading to a more rapid post-war growth. Until now little research exists tackling problems whether and how rapidly civil war victims recover from such negative events in the sense economic losses are reversed. Based on a present value model this study estimates dynamics and time scopes of post-war recovery required for compensating civil war GDP losses in several countries.
Fiscal Policy, Macroeconomics and Growth