Violent Conflicts and Economic Performance of the Manufacturing Sector in India


We investigate the effects of violent conflicts on the economic performance of manufacturing sector of Indian regional states. The number of violent conflicts, the number of deaths and the number of participants in violent conflicts all have negative impacts on gross value added and capital labor ratio of manufacturing sector. Among violent conflicts, ethnic and religious conflicts, as well as those nested in a large conflict have significantly negative impacts.


Violent conflict, Gross value added, Capital labor ratio, Ethnic conflict, Religious conflict, Nested conflict

JEL Classification

D74, K42, O43, R3, L2


Atsushi KATO
School of Business, Aoyama Gakuin University

Takahiro SATO
Research Institute for Economics and Business Administration
Kobe University
Rokkodai-cho, Nada-ku, Kobe
657-8501 Japan
Phone: +81-78-803-7036
FAX: +81-78-803-7059