Suchergebnisse

AbstractViolent conflict such as civil war may influence institutional quality by changing the political equilibrium or by changing preferences and norms. This study presents empirical evidence that in some cases civil war deteriorates institutional quality. By applying the synthetic control method to 25 cases of civil war between 1960 and 2010, I construct the counterfactual path of institutional quality in the absence of civil war. The effects of civil war are heterogeneous, but for a substantial minority of cases civil war appears to deteriorate institutional quality. These findings have implications for post‐civil war economic recovery as well as long run economic development.

AbstractEconomic and political transition can occur through peaceful or violent means. Violent transition disrupts the incentive for firms to make productive investments. This paper studies the determinants of profit reinvestment for firms in post‐conflict transition economies. Results indicate that while access to finance is an important determinant of reinvestment during transition, it is not as important in the post‐conflict context. However, property rights protections, in particular institutions of contract enforcement, are a more important determinant of profit reinvestment for firms operating in the post‐conflict environment than for firms in general. This indicates that obstacles to investment are context specific.