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Licensed Unlicensed Requires Authentication Published by De Gruyter October 4, 2014

Economic Growth and Recovery After Civil Wars

Luis A. Gil-Alana and Prakarsh Singh

Abstract

Using a fractional integration approach, we find that developing countries recover their economic growth faster than developed countries in response to a shock. The main finding is that longer civil conflicts are associated with a faster recovery process. To investigate deeper on this issue, we explore correlations with components of GDP. Higher government spending is correlated with faster recoveries post longer conflicts and higher consumption and investment are linked to faster recoveries following shorter conflicts.

JEL Classification: H56; F43; O40

Corresponding author: Luis A. Gil-Alana, Faculty of Economics and ICS, University of Navarra, Pamplona, Spain, E-mail:

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Published Online: 2014-10-4
Published in Print: 2014-12-1

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