Economic Development amidst Conflict: Exploring the Dynamics in Developing Nations

Abstract

This study aims to examine the effects of ongoing conflicts on economic growth in developing countries. The study has employed Quantile Regression technique to examine the influence of conflicts on economic growth at different levels of quantiles by using panel data from 2007 to 2022. The findings of the study indicate that ongoing conflict has a negative impact on GDP growth in developing countries while gross fixed capital formation, labor force growth, and governance show the positive impact on GDP growth in all income groups but population growth and social development index shows mixed results as in some quantiles these variables impact negatively on GDP. The government and policymakers may reduce ongoing conflict by strengthening institutions, conflict prevention initiatives and promoting peace-building programs that will increase economic growth in developing countries.