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Conflict Spillovers and Growth in Africa

Abstract A number of studies have attempted to evaluate the costs of conflict, but few have evaluated the impact of conflict on country growth. An even more limited number of studies have attempted to evaluate the spillover effects of conflict, with those that have finding clear negative effects on primary neighbors and then positive secondary neighbor effects. There are, however, a number of issues with these studies and this paper updates and develops their analysis using a dynamic panel approach. It confirms the negative sign and magnitude of the previous findings for the host country and primary neighbors, but finds no evidence of any positive or negative effects of conflict on secondary neighbors.