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Warfare, Civil Conflict and the Spatial Impacts on Domestic Investment: Evidence from South America, 1950-2000
Peace Economics, Peace Science and Public Policy (2011)
  • Michael J. Hicks, Ball State University
  • Jeff Smith, United States Air Force Academy
Abstract
This paper reports the effect of intra- and international conflict on domestic investment in South America from 1950-2000. We combine data from the Penn World Table 6.1 and the Militarized Interstate Dispute Dataset from the Correlates of War project in a spatial investment accelerator model. We find that the magnitude of conflicts (total fatal casualties) is associated with diminished domestic investment, in magnitudes that range from 0.1 percent to one third of total investment across South America's experience in civil wars, conflicts and ethnic wars. We find no evidence of spatial spillovers in South America's civil wars. The paucity of international conflicts in the region leads us to conclude there is no more than suggestive evidence of large impacts and spatial spillovers of international conflicts.
Keywords
  • conflict,
  • investment,
  • spatial econometrics
Publication Date
May 18, 2011
Citation Information
Michael J. Hicks and Jeff Smith. "Warfare, Civil Conflict and the Spatial Impacts on Domestic Investment: Evidence from South America, 1950-2000" Peace Economics, Peace Science and Public Policy Vol. 15 Iss. 1 (2011)
Available at: http://works.bepress.com/jeffrey_smith/1/