This dissertation investigates the relationships between institutions, fiscal decentralization and ethnic conflict.
From the viewpoint of development economics, the study of violent conflicts is of primary importance given the tremendous effect civil wars or armed conflicts have been shown to exert on human development and because there is substantial evidence that civil wars are largely associated, if not caused, by underdevelopment and lack of economic growth. If underdevelopment triggers civil wars and if civil wars permanently undermine the conditions of economic development, then violent conflict is one of the cause of the divergence in the long run path of development between countries.