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Econometrica Vol. 78 No. 1 2010

State Capacity, Conflict, and Development

Timothy Besley1; Torsten Persson2

1 London School of Economics and Political Science · 2 Stockholm University

open access

Abstract

The absence of state capacities to raise revenue and to support markets is a key factor in explaining the persistence of weak states. This paper reports on an on-going project to investigate the incentive to invest in such capacities. The paper sets out a simple analytical structure in which state capacities are modeled as forward looking investments by government. The approach highlights some determinants of state building including the risk of external or internal conflict, the degree of political instability, and dependence on natural resources. Throughout, we link these state capacity investments to patterns of development and growth.

DOI
10.3982/ecta8073
Volume
78
Issue
1
Pages
1-34
Language
en
Sources
bibtex:phds-export.bib openalex crossref openalex

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