The causes and consequences of development clusters: state capacity, peace, and income

Besley, TimothyORCID logo; and Persson, Torsten (2014) The causes and consequences of development clusters: state capacity, peace, and income Annual Review of Economics, 6 (1). pp. 927-949. ISSN 1941-1383
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Three important aspects of development-per capita income, state capabilities, and (the absence of) political violence-are correlated with each other at the country level. This article discusses the causes of such development clusters and highlights two explanations: common economic, political, and social drivers and complementarities (two-way positive feedbacks). It also draws out preliminary policy implications of these patterns of development and proposes topics for further research.

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