The Impact of Conflicts on GDP Per Capita of the OSCE States

Abstract

This paper analyses the impact of conflicts on the GDP per capita of the OSCE states, such as participating and partners for co-operation states for the period of 1991 – 2018. Since 1960th the cases of conflicts started being researched as separate topics, such as impacts of terrorism, civil wars, revolutions and other types of conflicts on the economy, GDP and other factors. The reason for selecting the given time-period, starting from 1991 is that many colonies and unions were collapsed, new states were formed and established (ex. collapse of the Soviet Union and the Yugoslavia). During this period, there were a lot of different conflicts that had an impact on various sectors of the economy. The conflict data that the research focuses are on “organized violence and armed conflicts” collected from the Uppsala Conflict Data Program. This type of conflicts includes State-Based, Non-State and One-Sided violence. The countries include 57 participating states and 11 partners for co-operation states (67 in total, excluding Holy See). The GDP per capita data is collected from the World Bank, other variables from the UNDP and Country Economy.com. Understanding the conflict itself is hard, so half of the paper consists of explanation of the organization, conflicts in the region of the OSCE, and the level of the conflicts and their possible attacks. Various methods were used to understand the impact of conflicts on the GDP per capita. The results of this research are in line with other findings in the literature. The conflicts cause a negative impact on the GDP per capita in the OSCE are countries, depending on their level of development and membership in other co-operation.