TY - BOOK ID - 136244794 TI - Conflicts and returns to stability in developing countries : a comparative analysis PY - 2010 PB - Washington, D.C., The World Bank, DB - UniCat KW - Achieving Shared Growth KW - Adverse effects KW - Capital flight KW - Comparative analysis KW - Conflict and Development KW - Debt Markets KW - Disequilibrium KW - Dividends KW - Economic growth KW - Economic outcomes KW - Economic outlook KW - Economic performance KW - Economic Theory & Research KW - Emerging Markets KW - Expectation gap KW - Expected returns KW - Exports KW - Finance and Financial Sector Development KW - GDP KW - GDP per capita KW - Growth models KW - Living standards KW - Macroeconomics and Economic Growth KW - Per capita income KW - Positive externalities KW - Post Conflict Reconstruction KW - Poverty Reduction KW - Private Sector Development KW - Productivity KW - Real income UR - https://www.unicat.be/uniCat?func=search&query=sysid:136244794 AB - Sub-Saharan Africa's dismal development outcomes - growth collapse and declining real income - are often used to highlight its sharp development contrast with other regions of the developing world. Drawing on a large cross-section analysis, this paper shows that Africa's underlying dismal records can also be largely accounted for by the skewed distribution of growth in the post-independence era. In particular, structurally low investment rates in a context of high political risk and uncertainty undermined growth prospects in the region. However, counterfactual simulations based on a variation of neoclassical growth models and under the hypothetical equalization of political risk profile alternative result in large economic returns, reflected in the significantly higher level of aggregate output and income in the subset of conflict-affected countries. Income gets even higher when the hypothetical reduction of political risks alternative is accompanied by sustained increases in capital accumulation. ER -