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A Note on War and Fiscal Capacity in Developing Countries

  • Abdur R. Chowdhury and Syed Mansoob Murshed EMAIL logo
Published/Copyright: November 9, 2013
Peace Economics, Peace Science and Public Policy
From the journal Peace Economics, Peace Science and Public Policy Volume 19 Issue 3

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.

Keywords: civil war; fiscal Capacity; developing countries
Corresponding author: Syed Mansoob Murshed, Erasmus University - International Institute of Social Studies, Kortenaerkade 12 Den Haag 2518 AX, The Netherlands; and Coventry University, Priory Street, Coventry CV1 5FB, UK, E-mail:

References

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Published Online: 2013-11-09
Published in Print: 2013-12-01

©2013 by Walter de Gruyter Berlin Boston

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  1. Masthead
  2. Masthead
  4. Introduction
  5. International Relations
  6. Major Power Status (In)Consistency and Political Relevance in International Relations Studies
  7. New Incentives and Old Organizations: The Production of Violence After War
  8. When the Weak Roar: Understanding Protracted Intrastate Conflict
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  10. You Shall Not Overkill: Substitution Between Means of Group Removal
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  18. Consequences of War and Militarization
  19. Macroeconomic Consequences of War and Terrorism in Lebanon
  20. A Note on War and Fiscal Capacity in Developing Countries
  21. On Defence Expenditure Reduction: Balancing Between Austerity and Security in Greece
  22. North Korea as a Military Dictatorship
https://doi.org/10.1515/peps-2013-0029
Keywords for this article
civil war; fiscal Capacity; developing countries

Articles in the same Issue

  1. Masthead
  2. Masthead
  4. Introduction
  5. International Relations
  6. Major Power Status (In)Consistency and Political Relevance in International Relations Studies
  7. New Incentives and Old Organizations: The Production of Violence After War
  8. When the Weak Roar: Understanding Protracted Intrastate Conflict
  9. Determinants of Extremism
  10. You Shall Not Overkill: Substitution Between Means of Group Removal
  11. Does Higher Education Decrease Support for Terrorism?
  12. The Curvilinear Effects of Economic Development on Domestic Terrorism
  13. Regional Dimensions of Somali Piracy and Militant Islamism: Anthropological and Econometric Evidence
  14. Institutions Factors and Violence
  15. Climate Change and the Risk of Mass Violence: Africa in the 21st Century
  16. Constitutional Design and Conflict Management in Africa
  17. An Overview of the Influence of Domestic Constraints on Crisis Initiation and Termination
  18. Consequences of War and Militarization
  19. Macroeconomic Consequences of War and Terrorism in Lebanon
  20. A Note on War and Fiscal Capacity in Developing Countries
  21. On Defence Expenditure Reduction: Balancing Between Austerity and Security in Greece
  22. North Korea as a Military Dictatorship
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