Natural resource extraction and civil conflict
Abstract
Based on evidence linking natural resources to civil conflict, this paper studies two armed groups fighting to control a resource and possibly a second prize. Labor is used in the agricultural, resource extraction and conflict sectors, and the groups also buy a capital input to conflict subject to the constraint that capital spending cannot exceed resource earnings. I find that exogenous shocks can have different effects on conflict intensity depending on whether the credit constraint binds. In particular, international policies to ban natural resource exports from conflict zones (e.g. ‘blood diamonds’), raise agricultural productivity or limit the import of weapons will limit conflict intensity if the credit constraint binds. However, if the credit constraint does not bind, then the first two policies promote conflict, and so could even the third policy. The results therefore suggest some caution in international policymaking.Download Info
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Bibliographic Info
Article provided by Elsevier in its journal Journal of Development Economics.
Volume (Year): 97 (2012)
Issue (Month): 1 ()
Pages: 24-31
Contact details of provider:
Web page: http://www.elsevier.com/locate/devec
Related research
Keywords: Resource curse; Resource extraction; Conflict; Sanctions; Kimberley Process;Find related papers by JEL classification:
- D7 - Microeconomics - - Analysis of Collective Decision-Making
- O1 - Economic Development, Technological Change, and Growth - - Economic Development
- Q3 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation
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Citations
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.Cited by:
- Moshik Lavie & Christophe Muller, 2011.
"Incentives and Survival in Violent Conflicts,"
Research Working Papers
47, MICROCON - A Micro Level Analysis of Violent Conflict.
- Moshik Lavie & Christophe Muller, 2011. "Incentives and Survival in Violent Conflicts," IDEP Working Papers 1102, Institut d'economie publique (IDEP), Marseille, France, revised Apr 2011.
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