Economic consequences of war: evidence from Sri Lanka

Ganegodage, K. Renuka and Rambaldi, Alicia N. (2014) Economic consequences of war: evidence from Sri Lanka. Journal of Asian Economics, 30 42-53. doi:10.1016/j.asieco.2013.12.001

Author Ganegodage, K. Renuka
Rambaldi, Alicia N.
Title Economic consequences of war: evidence from Sri Lanka
Journal name Journal of Asian Economics   Check publisher's open access policy
ISSN 1049-0078
Publication date 2014-01-10
Year available 2014
Sub-type Article (original research)
DOI 10.1016/j.asieco.2013.12.001
Open Access Status Not yet assessed
Volume 30
Start page 42
End page 53
Total pages 12
Place of publication Amsterdam, Netherlands
Publisher Elsevier
Language eng
Subject 2003 Finance
2002 Economics and Econometrics
Abstract We propose a theoretical and econometric framework to evaluate the impact of war on economic growth of a developing country with an open economy. The theoretical framework encompasses both the neoclassical and endogenous growth models. We test this framework using Sri Lankan data. The war had significant and negative effects both in the short and long-run (annual average of 9% of GDP). High returns from investment in physical capital did not translate in sizable positive externalities. Only short-run significant effects of openness on growth are found. Inconsistent politically driven policies towards openness are the likely reason.
Keyword Conflict
Returns to investment
Q-Index Code C1
Q-Index Status Confirmed Code
Institutional Status UQ
Additional Notes Published online ahead of print 10 January 2014.

Document type: Journal Article
Sub-type: Article (original research)
Collections: Official 2015 Collection
School of Economics Publications
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Created: Wed, 08 Jan 2014, 21:11:49 EST by Alys Hohnen on behalf of School of Economics