We empirically analyze the link between state capacity and civil conflict via the manufacturing sector, which is the source of wealth for an emerging new elite interested in obtaining political representation, and is the outcome of a new political equilibrium more in tune with capital accumulation. This raises the cost of civil conflict, reducing its probability of occurrence. We find evidence in favor of our hypothesis in panels of African and Latin American countries.
Costa, J. and Ricciuti, R. (2011), "State Capacity, Manufacturing, and Civil Conflict in Africa and Latin America, 1970–2007", Caruso, R. (Ed.) Ethnic Conflict, Civil War and Cost of Conflict (Contributions to Conflict Management, Peace Economics and Development, Vol. 17), Emerald Group Publishing Limited, Bingley, pp. 131-140. https://doi.org/10.1108/S1572-8323(2011)0000017010
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