From Revolution to Ruin: An Empirical Analysis Yemen's State Collapse

TL;DR

This paper empirically analyzes Yemen's 2011 revolution and civil war, revealing severe economic, health, and governance deterioration through counterfactual methods and multiple estimators, highlighting systemic collapse.

Contribution

It introduces a robust empirical framework using advanced counterfactual estimators to quantify Yemen's conflict impact on macroeconomic and institutional indicators.

Findings

Yemen's economy contracted sharply post-conflict

Human development indicators reversed gains

Governance and institutional capacity collapsed

Abstract

We assess the broad repercussions of Yemen's 2011 revolution and subsequent civil war on its macroeconomic trajectories, human development, and quality of governance by constructing counterfactual benchmarks using a balanced panel of 37 developing countries over 1990-2022. Drawing on matrix-completion estimators with alternative shrinkage regimes and a LASSO-augmented synthetic-control method, we generate Yemen's hypothetical no-conflict paths for key macroeconomic aggregates, demographic and health indicators, and governance metrics. Across the full spectrum of methods, the conflict's outbreak corresponds with a dramatic reversal of economic and institutional development. We find that output and income experience an unprecedented contraction, investment and trade openness deteriorate sharply, and gains in life expectancy and human development are broadly reversed. Simultaneously, measures of political accountability, administrative capacity, rule of law, and corruption control collapse, reflecting systemic institutional breakdown. The concordance of results across a variety of empirical strategies attests to the robustness of our estimates.