Comparative Economic Studies

, Volume 56, Issue 1, pp 1–24 | Cite as

Investment and Institutions in Post-Civil War Recovery

  • Colin O’Reilly


Theories of post-civil war recovery predict a ‘peace dividend’ via the re-accumulation of capital per worker. I suggest that such a recovery will occur only when quality institutions have been established. I couple data on civil wars from 1965 to 2000 with the measure of legal structure and protection of private property from the Economic Freedom of the World Index. The results from growth regressions using an interaction between an index of institutions, and investment/GDP confirm that weak institutions inhibit recovery in the post-conflict environment, providing empirical support for a model of conflict recovery via capital accumulation, conditional on institutions.


civil war post-war recovery institutions investment peace dividend 

JEL Classifications

O11 O16 O43 O57 P48 


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Copyright information

© Association for Comparative Economics 2014

Authors and Affiliations

  • Colin O’Reilly
    • 1
  1. 1.Economics, Suffolk UniversityMedfordUSA

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