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Conflict and Production: An Application to Natural Resources

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Author Info
Katharina Wick (Tilburg University, CentER)
Abstract

I present a Stackelberg model of conflict, in which contestants have limited endowments to be put in two separate sectors, thus incorporating salient features of many conflicts. The model is applied to the case of conflict over natural resources. Consistent with amounting empirical evidence regarding a so-called "resource curse," I find that the relation between conflict intensity and resource rents is non-monotonous, and that the economy's income growth rate may be negatively affected by resource abundance.

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File URL: http://www.bepress.com/cgi/viewcontent.cgi?article=1706&context=bejeap
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Publisher Info
Article provided by Berkeley Electronic Press in its journal The B.E. Journal of Economic Analysis & Policy.

Volume (Year): 8 (2008)
Issue (Month): 1 ()
Pages:
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Handle: RePEc:bpj:bejeap:v:8:y:2008:i:1:n:2

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Related research
Keywords: resource curse; exhaustible resources; civil war; economic performance and resources;

Find related papers by JEL classification:
D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances
O13 - Economic Development, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
Q32 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Exhaustible Resources and Economic Development

References listed on IDEAS
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  1. Francesco Caselli & Wilbur John Coleman II, 2006. "On the Theory of Ethnic Conflict," CEP Discussion Papers dp0732, Centre for Economic Performance, LSE. [Downloadable!]
    Other versions:
  2. Erwin H. Bulte & Richard Damania & Robert T. Deacon, 2004. "Resource Abundance, Poverty and Development," Working Papers 04-03, Agricultural and Development Economics Division of the Food and Agriculture Organization of the United Nations (FAO - ESA). [Downloadable!]
    Other versions:
  3. Tony Addison & Philippe Le Billon & S. Mansoob Murshed, 2002. "Conflict in Africa: The Cost of Peaceful Behaviour," Journal of African Economies, Oxford University Press, vol. 11(3), pages 365-386, September.
  4. Marcouiller, Douglas & Young, Leslie, 1995. "The Black Hole of Graft: The Predatory State and the Informal Economy," American Economic Review, American Economic Association, vol. 85(3), pages 630-46, June. [Downloadable!] (restricted)
  5. Rodriguez, Francisco & Sachs, Jeffrey D, 1999. " Why Do Resource-Abundant Economies Grow More Slowly?," Journal of Economic Growth, Springer, vol. 4(3), pages 277-303, September. [Downloadable!] (restricted)
  6. Azam, J.P., 2001. "The Redistributive State and Conflicts in Africa," Working Papers Series 2001-3, Centre for the Study of African Economies, University of Oxford.
  7. Collier, Paul & Hoeffler, Anke, 1998. "On Economic Causes of Civil War," Oxford Economic Papers, Oxford University Press, vol. 50(4), pages 563-73, October.
  8. Jonathan Isham & Michael Woolcock & Lant Pritchett & Gwen Busby, 2003. "The Varieties of Resource Experience: How Natural Resource Export Structures Affect the Political Economy of Economic Growth," Middlebury College Working Paper Series 0308, Middlebury College, Department of Economics. [Downloadable!]
    Other versions:
  9. Claudio Bravo-Ortega & Jose De Gregorio, . "The Relative Richness of the Poor? Natural Resources, Human Capital and Economic Growth," Working Papers Central Bank of Chile 139, Central Bank of Chile. [Downloadable!]
    Other versions:
  10. Azam, Jean-Paul & Mesnard, Alice, 2003. " Civil War and the Social Contract," Public Choice, Springer, vol. 115(3-4), pages 455-75, June. [Downloadable!] (restricted)
  11. Collier, Paul & Hoeffler, Anke & Soderbom, Mans, 2001. "On the duration of civil war," Policy Research Working Paper Series 2681, The World Bank. [Downloadable!]
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