Growth recovery after civil conflict: a fractional integration approach

Using recent econometric techniques based on fractional integration, we find that developing countries recover their economic growth faster than developed countries in response to a shock. Following this methodology, we find that longer civil conflicts are associated with a faster recovery process. We further investigate this issue by exploring correlations with components of GDP, military spending, institutions and aid and find heterogeneous effects of these channels by duration of conflict. Higher government spending is correlated with faster recoveries post longer conflicts, and higher consumption spending is linked to faster recoveries following shorter conflicts. Military spending appears to be driving the government expenditure that makes countries recover from longer conflicts. More democratic institutions are associated with faster recoveries post short wars but slower recoveries following long wars.     

Multiobjective fractional programming duality theory

Results of Geoffrion for efficient and properly efficient solutions of multiobjective programming problems are extended to multiobjective fractional programming problems. Duality relationships are given for these problems where the functions are generalized convex or invex.     

Revisiting the Naga conflict: what can India do to resolve this conflict?

Soon after India attained its independence from British colonial administration in 1947 the Nagas started waging an armed conflict against India to establish a sovereign independent state in Nagaland in the country's Northeast region. The conflict is today one of the world's longer running and little known armed conflicts. India's central government has tried unsuccessfully to tackle the problem through political reconciliation, use of force, and several development measures. Over the years, it has also undergone several changes in which the situation of conflict deepened whenever India's central government intervened. And yet, the road ahead also faces severe challenges because the demand for bringing the Nagas of India together into a single political entity will not go unchallenged from other ethnic groups. Moreover, a bitter leadership battle divides the Naga rebels and hence any future agreement is likely to be difficult due to factional politics as have happened in the past. Thus one way to satisfy the aspirations of different ethnic groups while protecting the boundaries of the existing states in India is to explore the option of cultural autonomy. This idea is not entirely new, but has lost significance over the years.     

MODELLING THE RELATIONSHIP BETWEEN DEFENSE SPENDING AND ECONOMIC GROWTH FOR THE FIJI ISLANDS

The goal of this paper is to examine the nexus between GDP and military expenditure. We model this relationship within a multivariate framework by including exports in the model. We use the recently developed bounds testing approach to cointegration and find that there is a long run relationship among the variables when GDP is the endogenous variable. Normalizing on GDP and using four different estimators, we find that in the long run both military expenditure and exports have a positive impact on GDP. Finally, using the Granger causality test, we find that there is evidence for military expenditure Granger causing exports and exports Granger causing GDP, implying that military expenditure indirectly Granger causes GDP in the short run. In the long run, we find that both military expenditure and exports Granger cause GDP for Fiji. Our findings are consistent with the Keynesian school of thought, leading us to derive some policy implications.     

Demographic Movements: The Threat to India's Economy and Security

Migrations have taken place from the beginning of history. There has been a general impression that the free movement of people contributes to economic growth. Europe's economic recovery after the Second World War was fuelled in large part by the labour of immigrants. The pendulum has, however, now swung to the other extreme. There is pressure on land, resources are getting scarce and employment opportunities are limited. As a consequence, there is anti-immigrant feeling in several countries. In 1947, when British India was partitioned, Hindus moved out in large numbers from what was carved out as East Pakistan. After the liberation of Bangladesh in 1971, Hindus and Muslims continued to cross over to India for a variety of reasons. It is estimated that about 16 million Bangladeshis have managed to infiltrate into India. The presence of such a large body of immigrants is a strain on India's economy. What is worse, with the rise of Islamic fundamentalism in Bangladesh, the immigrants are also being looked upon as a security threat.