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State capacity, conflict, and development

By Timothy Besley and Torsten Persson

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 ongoing 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

Topics: HC Economic History and Conditions, JF Political institutions (General)
Publisher: Wiley-Blackwell
Year: 2010
DOI identifier: 10.3982/ECTA8073
OAI identifier: oai:eprints.lse.ac.uk:33761
Provided by: LSE Research Online
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