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Drakos, K. and Kutan, A.M., (2003). Regional effects of terrorism on tourism in three Mediterranean countries. Journal of Conflict Resolution, 47(5), pp.621-641.

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Article

The Effect of External Conflicts on the Economic Growth: Evidence from Emerging and Developed Countries

1International Trade, Shanghai University, Shanghai, China

2School of Economics, Shanghai University, Shanghai, China


Journal of Finance and Economics. 2022, Vol. 10 No. 1, 13-19
DOI: 10.12691/jfe-10-1-3
Copyright © 2022 Science and Education Publishing

Cite this paper:
Elham Jafarzadeh, He Shuquan. The Effect of External Conflicts on the Economic Growth: Evidence from Emerging and Developed Countries. Journal of Finance and Economics. 2022; 10(1):13-19. doi: 10.12691/jfe-10-1-3.

Correspondence to: Elham  Jafarzadeh, International Trade, Shanghai University, Shanghai, China. Email: Jafarzadehelham50@gmail.com

Abstract

The current study examined the effect of the external conflicts on the economic growth of countries in both developed and emerging markets. The current study has used data collected from world bank for the period of 1996 to 2016 with a total 128 countries used for the estimation. The results of the regression using the Hausman test showed that external conflicts adversely affected the economic growth of a country. Moreover, GDP growth, employment, inflation rate, gross capital formation economic freedom, trade freedom and business freedom and foreign reserves are found to have a significant and positive influence on the economic growth of a country. Therefore, the improvement of international trade and economic prosperity the countries are required to be devised such strategies that could constrained the external conflicts and bring economic growth in a country.

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