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The Economic Cost of Violent Conflict: The Case of Maluku Province in Indonesia

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  • Maheshwar Rao
  • Yogi Vidyattama

Abstract

Against the background of the socio-economic and political crises of 1998–2000 in Indonesia, one of its provinces, Maluku, endured its own internal conflicts between 1999 and 2004. The coincidence of these national and regional crises—the tumult affecting Indonesia as a whole and the conflict restricted to Maluku—make the impact of local conflict on Maluku’s economy hard to identify empirically. To solve this problem, we use a synthetic control method (SCM) to construct a synthetic control unit for Maluku based on other Indonesian provinces. Our findings support the view that the violence in Maluku between 1999 and 2004 shifted the regional economy onto a lower growth path.

Suggested Citation

  • Maheshwar Rao & Yogi Vidyattama, 2017. "The Economic Cost of Violent Conflict: The Case of Maluku Province in Indonesia," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 53(3), pages 281-308, September.
    • Handle: RePEc:taf:bindes:v:53:y:2017:i:3:p:281-308
    DOI: 10.1080/00074918.2017.1298720
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    Cited by:

    1. Chuah, Swee Hoon & Feeny, Simon & Hoffmann, Robert & Sanjaya, Muhammad Ryan, 2019. "Conflict, ethnicity and gender: A money-burning field experiment in Indonesia," Economics Letters, Elsevier, vol. 177(C), pages 14-17.
    2. Andriansyah & Asep Nurwanda & Bakhtiar Rifai, 2023. "Structural Change and Regional Economic Growth in Indonesia," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 59(1), pages 91-117, January.
    3. Hal Hill & Yogi Vidyattama, 2016. "Regional Development Dynamics In Indonesia Before And After The ‘Big Bang’ Decentralization," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 61(02), pages 1-26, June.

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