Abstract
This paper uses civil conflicts in Southeast Asia to illustrate the economic causes and consequences of the conflicts on the economy. It argues that the causes of conflicts in this region are consistent with what predicted by theories that link economic growth and inequality to the motives and opportunity costs of civil unrests. The chapter discusses the economic impacts of civil conflicts on physical capital, natural capital, human capital, and total factor productivity, as well as arguing that the effects could persist in the long run.
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