Macroeconomic Implications of Peace: Some Clarifications from a Worldwide Perspective

Abstract

Peace has important implications for socioeconomic outcomes domestically as well as globally. Present study observes macroeconomic implications of peace at global level. By utilizing global statistics from various data sources including Global Peace Index published by institute of Economics and Peace, the impact of peace on different macroeconomic variables is estimated. Exports, international trade, inflation and bribery are considered as variables to perceive macroeconomic implications. Descriptive statistics and some panel data techniques are used. Overall findings of this study depict that different aspects of peace violation have adverse consequences for macroeconomic condition. Increasing peace by reducing violence and conflict is helpful to improve macroeconomic condition among the countries and within countries of the world.