The Effect of War on Economic Growth

Author
Clifford F. Thies, Christopher F. Baum
Content Type
Journal Article
Journal
The Cato Journal
Volume
40
Issue Number
1
Publication Date
Winter 2020
Institution
The Cato Institute
Abstract
With the collapse of the Soviet Union, it was thought that major wars had become obsolete (Mueller 1989) and perhaps regional conflicts might be brought under control (Cederman, Gleditsch, and Wucherpfennig 2017). But, while the level of violence declined, the number of wars in the world appears to have reached a new steady state. A world that was once organized by East-West rivalry is now characterized by ethno-religious conflicts, as well as by spontaneously arising transnational terrorist organizations and criminal gangs. For various reasons, economists have become interested in investigating the causes and effects of war and other armed conflict (e.g., Coyne and Mathers 2011). This article uses a consistent measurement of these forms of violence across space and time to conduct a rigorous quantitative analysis of the effect of war on economic growth.
Topic
Cold War, War, History, Economic growth, Conflict
Political Geography
Global Focus