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Economic Aspects of Genocides, Other Mass Atrocities, and Their Preventions$
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Charles H. Anderton and Jurgen Brauer

Print publication date: 2016

Print ISBN-13: 9780199378296

Published to Oxford Scholarship Online: August 2016

DOI: 10.1093/acprof:oso/9780199378296.001.0001

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The Macroeconomic Toll of Genocide and the Sources of Economic Development

The Macroeconomic Toll of Genocide and the Sources of Economic Development

Chapter:
(p.125) 5 The Macroeconomic Toll of Genocide and the Sources of Economic Development
Source:
Economic Aspects of Genocides, Other Mass Atrocities, and Their Preventions
Author(s):

Dimitrios Soudis

Robert Inklaar

Robbert Maseland

Publisher:
Oxford University Press
DOI:10.1093/acprof:oso/9780199378296.003.0005

Genocides have received much less attention than other types of conflict. They are generally treated as separate events in the literature or even as mere consequences of civil wars. Yet, there is ample reason to expect the economic consequences of genocides to be worthy of independent analysis. This chapter explores the dynamic impact of genocides on economic output. We show that in the first years after the start of a genocide, economic activity falls substantially. Subsequently, there is neither recovery of lost ground, nor a further loss. We also show that this drop in economic activity is due to a drop in total factor productivity, rather than a decline in production factors. These results are consistent with the scenario in which genocides (permanently) destroy social capital, negatively affecting exchange, specialization, and allocative efficiency.

Keywords:   genocide, economic growth, productivity, capital, social capital

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