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| 1 |
ID:
158535
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| Summary/Abstract |
Japan's remarkable postwar growth spurt in the 1960s would not have been possible without Japan's alliance with the United States. Policy makers, political scientists, economists, historians, and journalists on both sides of the Pacific have made this claim, but no study has yet tested it with modern statistical methods. In this article, we compare the economic growth trajectories of Japan and a statistically constructed “synthetic” Japan, which had a similar profile until the late 1950s but did not experience the consolidation of the US–Japan alliance, a process that began in 1958 and culminated with the signing of a formal defense pact in January 1960. We find that Japan's per capita gross domestic product (GDP) grew much faster than the synthetic Japan's from 1958 to 1968. We substantiate these results with in-depth historical analyses on how the United States facilitated Japan's economic miracle.
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| 2 |
ID:
182679
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| Summary/Abstract |
One way nuclear agreements might keep signatories from proliferating is by constraining nuclear capacity. Theoretical work on nonproliferation often points to such constraints as an important driver of nonproliferation success. Some have argued that, absent sufficient constraint, states with the desire and capability to proliferate will do so. Faced with more costly routes to a weapon, states subject to technological constraint may abide by the terms of the deal. This perspective poses an important empirical question: do nonproliferation agreements result in significant technological constraint in practice? This article evaluates the empirical prevalence of constraints arising from nonproliferation deals. Doing so requires (1) providing an appropriate measure of nuclear proficiency and (2) developing an estimate of the counterfactual, no-agreement capacity of states that received such agreements. This study addresses both of these points. First, new data are gathered to estimate proficiency, improving upon existing measures in the literature. Second, the generalized synthetic control method is applied to estimate counterfactual proficiency levels for the recipients of agreements. With this approach, the constraining effects of deals the United States implemented with Japan, South Korea, and Taiwan and the Declaration of Iguaçu between Brazil and Argentina are evaluated. The findings indicate that the constraining effect of these nonproliferation agreements is minimal.
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| 3 |
ID:
192047
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| Summary/Abstract |
This study estimates the economic effects of nuclear weapons development efforts in Pakistan using synthetic control group methods. Pakistan started its nuclear weapons program in 1972 and conducted its first test in 1998. This paper focuses on the growth impacts during the 1973 to 1997 period, before Pakistan established itself as a nuclear power. I create a synthetic control group for Pakistan using Per capita Gross Domestic Product (GDP) from the 1950 to 1972. The impact of the nuclear weapons development program is measured as a treatment dummy for the years 1973–1997 in a Difference-in-Difference model. I find that Pakistan’s per capita GDP would have been an average of about $718 per year higher had the country not undertaken the effort to produce a nuclear weapon. This equates to per capita GDP being 27.8% lower on average over the 25-year weapons-development period. Results are robust to several alternative specifications, including country exclusion, sparse synthetic controls, non-outcome characteristics as predictors of GDP, and in-space placebo experiments of differing specifications.
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| 4 |
ID:
188409
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| Summary/Abstract |
With more than ten thousand casualties, the ongoing hybrid Ukrainian war between pro-Russian separatists and the government in the Donbass region, Ukraine’s productive core, has taken a severe toll on the country. Using cross-country panel data over the period 1995–2017, this paper estimates the causal effects of the Donbass war on Ukraine’s GDP. Our counterfactual estimation by the synthetic control method shows that Ukraine’s per capita GDP foregone due to the war amounts to 15.1% on average for 2013–2017. Separate analysis for the affected regions of Donetsk and Luhansk indicates an average causal effect of 47% for 2013–2016. Results are robust to pre-war confounds, namely, the Orange Revolution and Ukrainian-Russian gas disputes. As such, we discuss mechanisms underlying the war’s causal effects on economic performance, which is of broader relevance for debates on the role of government in hybrid conflict management.
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| 5 |
ID:
179960
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| Summary/Abstract |
In this paper, we propose a quasi-experimental approach to assess the effect that downsizing of the largest experimental military base in Europe, located in Sardinia, Italy, had on local economies. The study shows the fruitfulness of the Synthetic Control method for assessment of socioeconomic impacts on a single treated unit when other standard methods for impact evaluation are not feasible. It is shown that the local communities analysed have been characterised by different levels of frailty, which should be attentively considered if further downsizing of the base will be placed on the political agenda.
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| 6 |
ID:
110185
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| Publication |
2012.
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| Summary/Abstract |
We study the causal effect of recent landmark events of the Colombian armed conflict on the foreign perception of sovereign risk, as measured by the price of the Credit Default Swap (CDS) of Colombian bonds. We construct a Synthetic Control Group to use as the non-conflict counterfactual of the Colombian CDS price and compare its behavior around relevant conflict-event dates with that of the actual (conflict-affected) Colombian CDS. Results suggest that the impact of conflict on the foreign perception of sovereign risk is sizable but rather idiosyncratic, and depends on the political context surrounding each event.
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