Monday, February 18, 2019
Essay --
I have grouped some past writings on the topic and investigations I get out be pursuing. Economic increment and how conflict affects GDP per capita produce go out be discussed theoretically and by previous empirical analyses. Observations will be made on the assumptions they authorise and what they indicate for this paper.2.1 Economic proceedsI first look into the opening and previous studies on economic growth. The reason behind this is to get an appraisal of what model I will use and which variables to include in my regressions. there have been many empirical studies analysing possible variables which argon significant to economic growth. Barro, QJE 1991 uses the neoclassical Solow model (Solow, 1956 and Mankiw et al., 1992) to test for the theory of convergence which states that countries with an initial level GDP grow more rapidly. This makes economic sense as the region that has been involved in the conflict has a greater amount of growth potential. The soil will s imply need to recover its lost resources and will fulfil conditional convergence. The neoclassical theory states as a country reaches the steady state an increase in investment will impart in diminishing returns on dandy. Poor countries, which have lower capital and higher rates of return on capital, will pull on base to the income levels of rich countries with faster growth rates. As for the variables tested, for 98 countries in the rate of flow 1960-1985, the growth rate of GDP per capita is positively related to initial human beings capital and negatively related to the initial level of real per capita GDP. emersion is in return related to the share of government consumption in GDP. Growth rates are positively related to measures of political stability and inversely related to a... ...nds. As for the previous empirical studies according to Koubi, there are three different studies conducted on the topic. The existing empirical studies of the relationship mingled with war and economic performance are one of three types a) Those that canvass the unconditional relationship between war and economic growth. b) Those that examine the conditional relationship. And c) those that attempt to identify the mechanisms through which war affects economic growth (Koubi, 2002). My particular study focuses more on the first type as I am not particular examining the intensity, duration or severity of war, further focusing on a particular region and the different effect of civil war within the countries and interstate wars within the region. I will also observe previous studies of another topic that may last of interest as my paper progresses, the spill over effect.
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