This paper empirically tests bellicist theories of state building in the East Asian context, paying attention to the interplay between external threats and internal challenges and their implications for these states’ extractive power. How much variation in state building in the region can be attributed to war and war preparation as a result of both external threats and internal challenges? In particular, it provides more fine-grained analysis on the different types of internal challenges and their impact on state capacity building. The article argues that in the East Asia region, both external threats and internal challenges are crucial to explaining the variation in state capacity across the region. However, we also find that different types of internal challenges have different effects. Particularly, communist insurgencies seem to have both an immediate and long-term positive effect in compelling the state to respond with more extraction to engage in state-building efforts.
