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Publication Poverty and Civil War: Revisiting the Evidence(2010) Djankov, Simeon; Reynal-Querol, MartaPrevious research has interpreted the correlation between per capita income and civil war as evidence that poverty is a main determinant of conflict. In this paper, we find that the relationship between poverty and civil war is spurious and is accounted for by historical phenomena that jointly determine income evolution and conflict. In particular, the statistical association between poverty and civil wars disappears once we include country fixed effects. Also, using cross-section data for 1960 to 2000, we find that once historical variables like European settler mortality rates and the population density in 1500 are included in civil war regressions, poverty does not have an effect on civil wars. These results are confirmed using longer time series from 1825 to 2000.Publication The Demographic and Socio-economic Distribution of Excess Mortality during the 1994 Genocide in Rwanda(2010) de Walque, D.This paper studies the demographic consequences of the Rwandan genocide and how the excess mortality due to the conflict was distributed in the population. Data collected by the 2000 Demographic and Health Survey indicate that although there were more deaths across the entire population, adult males were the most likely to die. Using the characteristics of the survey respondent as a proxy for the socio-economic status of the victims' family, the results also show that individuals with an urban or more educated background were more likely to die. The country's loss of human capital is a long-term cost of the genocide that compounds the human tragedies.Publication Developing Countries, Dispute Settlement, and the Advisory Centre on WTO Law(2010) Bown, Chad P.Critical appraisals of the current and potential benefits from developing country engagement in the WTO focus mainly on the Doha Round of negotiations. This paper examines a different aspect of developing country participation in the WTO: use of the WTO dispute settlement system to enforce foreign market access rights already negotiated in earlier rounds of multilateral negotiations. We examine data on developing country use from 1995 through 2008 of the WTO Dispute Settlement Understanding (DSU) to enforce foreign market access. The data reveal three notable trends: developing countries' sustained rate of self-enforcement actions despite declining use of the DSU by developed countries, developing countries' increased use of the DSU to self-enforce their access to the markets of developing as well as developed countries, and the prevalence of disputes targeting highly observable causes of lost foreign market access, such as antidumping, countervailing duties, and safeguards. The paper also examines how introduction of the Advisory Centre on WTO Law (ACWL) into the WTO system in 2001 has affected developing countries' use of the DSU to self-enforce their foreign market access rights. A first pass at the data indicates that developing country use of the ACWL mirrors their use of the DSU more broadly; the ACWL has had little effect in terms of introducing new countries to DSU self-enforcement. A closer look at the data reveals evidence on at least three channels through which the ACWL may be enhancing developing countries' ability to self-enforce foreign market access: increased initiation of sole-complainant cases, more extensive pursuit of the DSU legal process for any given case, and initiation of disputes over smaller values of lost trade.Publication Geography, Poverty and Conflict in Nepal(2010) Do, Quy-Toan; Iyer, LakshmiWe conduct an empirical analysis of the geographic, economic, and social factors that contributed to the spread of civil war in Nepal over the period 1996-2006. This within-country analysis complements existing cross-country studies on the same subject. Using a detailed dataset to track civil war casualties across space and over time, several patterns are documented. Conflict-related deaths are significantly higher in poorer districts and in geographical locations that favor insurgents, such as mountains and forests; a 10 percentage point increase in poverty is associated with 25-27 additional conflict-related deaths. This result is similar to that documented in cross-country studies. In addition, the relationship with poverty and geography is similar for deaths caused by the insurgents and deaths caused by the state. Furthermore, poorer districts are likely to be drawn into the insurgency earlier, consistent with the theory that a lower cost of recruiting rebels is an important factor in starting conflict. On the other hand, geographic factors are not significantly associated with such onset, suggesting that they instead contribute to the intensity of violence only after conflict has started. Finally, in contrast to some cross-country analyses, ethnic and caste polarization, land inequality, and political participation are not significantly associated with violence.Publication Economic Growth and Ethnic Violence : An Empirical Investigation of Hindu-Muslim Riots in India(2010) Bohlken, Anjali Thomas; Sergenti, Ernest JohnMost studies of Hindu-Muslim riots in India have tended to emphasize the effects of social, cultural, or political factors on the occurrence of ethnic violence. In this article, the authors focus on the relationship between economic conditions and riots. Specifically, this article examines the effect of economic growth on the outbreak of Hindu-Muslim riots in 15 Indian states between 1982 and 1995. Controlling for other factors, the authors find that just a 1% increase in the growth rate decreases the expected number of riots by over 5%. While short-term changes in growth influence the occurrence of riots, this study finds no evidence of a relationship between the levels of wealth in a state and the incidence of ethnic riots. Moreover, by including state fixed effects, the authors determine that the negative relationship found between economic growth and riots is driven primarily by the relationship between growth and riots within a state over time rather than across states. These results are robust to controlling for a number of other factors such as economic inequality, demographic variables, political competition, temporal lags, spillover effects from adjacent states, and year effects. Finally, to address potential concerns that economic growth could be a consequence rather than a cause of violence or that other unobserved factors could confound the relationship between economic growth and the occurrence of Hindu-Muslim riots, the authors also employ instrumental variables (IV) estimation, using percentage change in rainfall as an instrument for growth. The results with IV estimation are similar to the results with non-IV estimation in terms of sign and significance, indicating that the negative effect of economic growth on riots is not due to reverse causality or omitted variables bias.Publication Conflict Displacement and Labor Market Outcomes in Post-war Bosnia and Herzegovina(2010) Kondylis, FlorenceThe war in Bosnia and Herzegovina of the early nineties displaced 1.3 million people. This study uses longitudinal data to document the effects of this displacement on labor market outcomes. To account for endogeneity in displacement, I exploit the fact that the level of violence affected the decision to leave and that pre-war economic performance is orthogonal to local violence levels. I find that displaced Bosnians are less likely to be working relative to the people who stayed. Displaced men experience higher unemployment levels, and displaced women are more likely to drop out of the labor force.Publication Understanding Variations in Local Conflict: Evidence and Implications from Indonesia(2009) Barron, Patrick; Kaiser, Kai; Pradhan, MennoRecent studies of large-scale "headline" conflicts have excluded consideration of local conflict, in large part due to the absence of representative data at low levels of geographic specification. This paper is a first attempt to correct for that by assessing the incidence, impacts, and patterns of local conflict in Indonesia. We employ a combination of qualitative fieldwork with an exploratory statistical analysis of the 2003 Village Potential Statistics collected by the Bureau of Statistics (Potensi Desa-PODES), which maps conflict across all of Indonesia's villages/neighborhoods. Violent conflict can be observed throughout the archipelago. The qualitative analysis shows that local conflicts vary in form and impacts across districts, and that local factors are key. The quantitative analysis, which excludes high conflict areas of Indonesia, confirms the importance of economic factors, with positive correlations between violent conflict and poverty, inequality, and variables measuring economic development. Clustering of ethnic groups and ill-defined property rights were also positively associated with violence.Publication Political Violence and Underdevelopment(2008) Bodea, Cristina; Elbadawi, Ibrahim A.This paper analyses the economic growth impact of organised political violence. First, we identify the various manifestations of political violence (riots, coups and civil war) and their risk of occurrence by using a multinomial model. Second, we use predicted probabilities of aggregate violence and its three manifestations to identify their growth effects in an encompassing growth model. The results of Generalised Method of Moments dynamic panel regressions suggest that organised political violence, especially civil war, significantly lowers long-term economic growth. Moreover, unlike most previous studies, we also find ethnic fractionalisation to have a negative and direct effect on growth, though its effect is substantially ameliorated by the institutions specific to a non-factional democratic society. Third, we find that Sub-Saharan Africa (SSA) has been disproportionately impacted by civil war, which explains a substantial share of its economic decline, including the widening income gap relative to East Asia. Civil wars have also been very costly for SSA. For the case of Sudan, a typical large African country experiencing a long-duration conflict, war cost amounts to $46 billion (in 2000 fixed prices), which is roughly double the country's current stock of external debt. Fourth, we suggest that to break free from its conflict-underdevelopment trap, Africa needs to better manage its ethnic diversity and the way to do it is to develop inclusive, non-factional democracy. A democratic but factional polity will not do the trick and is only marginally better than authoritarian regimes.