Document Type

Article

Language

eng

Publication Date

11-9-2013

Publisher

De Gruyter

Source Publication

Peace Economics, Peace Science and Public Policy

Source ISSN

1079-2457

Abstract

We examine the effect of war on state fiscal capacity in developing countries, measured by tax revenue to GDP ratios. In divided or factionalised societies, patronage may substitute for common interest public goods, with the possibility of violent contestation over a rent. Our dynamic panel empirical estimates of the determinants of fiscal capacity are applied to 79 developing countries, during 1980–2010. Results indicate that war, especially civil war, retards fiscal capacity, along with poor governance, oil dependence and macroeconomic mismanagement.

Comments

Published version. Peace Economics, Peace Science and Public Policy, Vol. 19, No. 3 (November 9, 2013): 431-435. DOI. © 2013 by Walter de Gruyter GmbH. Used with permission.

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