Debt and peace in post-conflict countries
Cooperation for a Peaceful and Sustainable World Part 2
ISBN: 978-1-78190-655-2, eISBN: 978-1-78190-656-9
Publication date: 30 December 2013
Abstract
Post-conflict economies are characterized by high, and often growing, levels of debt. At the same time, peace is particularly fragile in the aftermath of a conflict. This chapter studies how debt affects the risk of war in the 10 years that follow the end of a previous conflict. After controlling for per-capita income and other economic, political, and geographical factors, external debt is found to increase the risk of war. Conversely, the effect of domestic debt is negligible. The policy implication for the international community is clear: debt relief helps stabilize peace in war-torn economies.
Acknowledgements
Acknowledgments
I would like to thank Adrian Gauci, Ben Goldsmith, and seminar participants at the School of Economics of the University of Queensland for helpful comments. Any remaining error is solely mine.
Citation
Carmignani, F. (2013), "Debt and peace in post-conflict countries", Cooperation for a Peaceful and Sustainable World Part 2 (Contributions to Conflict Management, Peace Economics and Development, Vol. 20 Part 2), Emerald Group Publishing Limited, Leeds, pp. 131-156. https://doi.org/10.1108/S1572-8323(2013)00020.2012
Publisher
:Emerald Group Publishing Limited
Copyright © 2013 Emerald Group Publishing Limited