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Extractive resource policy and civil conflict: Evidence from mining reform in the Philippines

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  • Crost, Benjamin
  • Felter, Joseph H.

Abstract

We estimate how a shift towards a more extractive resource policy, brought about by a regulatory reform of the mining sector, affected civil conflict in the Philippines. Our empirical strategy uses a difference-in-differences approach that compares provinces with and without mineral deposits before and after the reform. We find that the reform led to a large increase in conflict violence, most likely due to increased competition over control of resource-rich areas. The estimated welfare cost of this increase in violence is several orders of magnitude larger than the country's total revenue from taxes on mineral production.

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  • Crost, Benjamin & Felter, Joseph H., 2020. "Extractive resource policy and civil conflict: Evidence from mining reform in the Philippines," Journal of Development Economics, Elsevier, vol. 144(C).
    • Handle: RePEc:eee:deveco:v:144:y:2020:i:c:s0304387820300183
    DOI: 10.1016/j.jdeveco.2020.102443
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    Cited by:

    1. Pagel, Jeff, 2022. "A natural resource curse: the unintended effects of gold mining on malaria," LSE Research Online Documents on Economics 115532, London School of Economics and Political Science, LSE Library.
    2. Massimo Morelli & Dominic Rohner, 2023. "Natural resources and conflict: The crucial role of power mismatch and geographic asymmetries," Working Papers 698, IGIER (Innocenzo Gasparini Institute for Economic Research), Bocconi University.

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    More about this item

    Keywords

    Natural resources; Minerals; Mining; Extractive policy; Reform; Civil conflict;
    All these keywords.

    JEL classification:

    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Q34 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Natural Resources and Domestic and International Conflicts
    • D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances; Revolutions
    • H56 - Public Economics - - National Government Expenditures and Related Policies - - - National Security and War

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