Article
A Note on War and Fiscal Capacity in Developing Countries
Peace Economics, Peace Science and Public Policy
Document Type
Article
Language
eng
Publication Date
11-9-2013
Publisher
De Gruyter
Disciplines
Abstract
We examine the effect of war on state fiscal capacity in developing countries, measured by tax revenue to GDP ratios. In divided or factionalised societies, patronage may substitute for common interest public goods, with the possibility of violent contestation over a rent. Our dynamic panel empirical estimates of the determinants of fiscal capacity are applied to 79 developing countries, during 1980–2010. Results indicate that war, especially civil war, retards fiscal capacity, along with poor governance, oil dependence and macroeconomic mismanagement.
Citation Information
Abdur Chowdhury and Syed M. Murshed. "A Note on War and Fiscal Capacity in Developing Countries" Peace Economics, Peace Science and Public Policy (2013) ISSN: 1079-2457 Available at: http://works.bepress.com/abdur_chowdhury/113/
Published version. Peace Economics, Peace Science and Public Policy, Vol. 19, No. 3 (November 9, 2013): 431-435. DOI. © 2013 by Walter de Gruyter GmbH. Used with permission.