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A SURVEY OF THE GLOBAL ECONOMIC COSTS OF CONFLICT

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Abstract:

This paper defines the global economic costs of conflict and suggests two key criteria, namely comprehensiveness and consistency, which are necessary for a valid calculation of such costs. A critical review of the literature reveals that most studies focus on national income losses, using counterfactual regression models, finding a negative impact on growth both for conflict countries themselves and for their neighbors. However, the debate is quite fragmented and the literature fails to combine these insights in a comprehensive and consistent manner. Furthermore, there is little work thus far on integrating aggregate and micro-level estimates of the costs of conflict.

Keywords: Conflict; Costs; Growth; Methodology; Survey; War

Document Type: Research Article

DOI: http://dx.doi.org/10.1080/10242690903568934

Affiliations: 1: German Institute for Economic Research (DIW Berlin), Berlin, Germany,Households in Conflict Network (HiCN), Brighton, UK 2: German Institute for Economic Research (DIW Berlin), Berlin, Germany,Households in Conflict Network (HiCN), Brighton, UK,Humboldt University Berlin, Berlin, Germany 3: German Institute for Economic Research (DIW Berlin), Berlin, Germany

Publication date: April 1, 2010

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