Publication Date

January 2002

Publication Details

Levy, A and Faria, JR, Conflict, Political Structure and Economic Growth in Dual-Population Lands, Working Paper 02-19, Department of Economics, University of Wollongong, 2002.


The optimal consumption growth rate for a group in a strictly political federation in a dual-population land is lower than that under partition if the group is wealthier and has a lower population growth rate than its counterpart. Even in such circumstances the group may economically benefit from joining a federation that facilitates technological transfer as long as the group’s initial technology is inferior to the hybrid. The group’s optimal consumption growth rate during a civil war is larger than those under partition and a strictly political federation if its rival’s warfare is mainly aimed at inflicting casualties.