IDEAS home Printed from https://ideas.repec.org/a/bla/kyklos/v72y2019i1p183-207.html
   My bibliography  Save this article

The Effects of Military Occupation on Growth

Author

Listed:
  • Sharmila Vishwasrao
  • Matthew Schneider
  • Eric P. Chiang

Abstract

A substantial literature exists on the effects of military expenditures on economic growth, yet no study has analyzed the effects of military occupation other than in anecdotal cases. This paper uses a panel of 214 countries from 1950 to 2013 to study how economic growth is impacted by different forms of military occupation. Transformative occupations aim to establish institutions to promote stability once the occupation ends, while subdual occupations are more malevolent in their objectives. Our results show that transformative occupations produce positive growth in occupied countries after the occupation period concludes. Separating these effects into the short run and long run, we find that while countries subject to a subdual occupation experience a short‐run increase in growth at the end of the occupation, countries with transformative occupation experience long‐run increases in growth. These findings are robust to the inclusion of traditional drivers of growth. Policy implications suggest that regional conflicts that are solved using military intervention may have lasting effects on growth as long as the intentions of the occupying force are transformative in nature.

Suggested Citation

  • Sharmila Vishwasrao & Matthew Schneider & Eric P. Chiang, 2019. "The Effects of Military Occupation on Growth," Kyklos, Wiley Blackwell, vol. 72(1), pages 183-207, February.
    • Handle: RePEc:bla:kyklos:v:72:y:2019:i:1:p:183-207
    DOI: 10.1111/kykl.12194
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/kykl.12194
    Download Restriction: no
    File URL: https://libkey.io/10.1111/kykl.12194?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Simon Varaine, 2023. "Dying to die: New micro and macro evidence that suicide terrorists are suicidal," Kyklos, Wiley Blackwell, vol. 76(3), pages 478-500, August.
    2. Mayberry, Anthony A., 2023. "Demilitarization and economic growth: Empirical evidence in support of a peace dividend," Journal of Comparative Economics, Elsevier, vol. 51(3), pages 960-988.
    3. Tho Pham & Oleksandr Talavera & Andriy Tsapin, 2021. "Shock contagion, asset quality and lending behaviour: The case of war in Eastern Ukraine," Kyklos, Wiley Blackwell, vol. 74(2), pages 243-269, May.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:kyklos:v:72:y:2019:i:1:p:183-207. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://www.blackwellpublishing.com/journal.asp?ref=0023-5962 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.