Are All Resources Cursed? Coffee, Oil and Armed Confict in Colombia
AbstractThe “Resource Curse” posits a positive association between the value of natural commodities and civil conflict. In this paper, we suggest that the value-to-violence relationship differs across commodities, and that the factor intensity of production determines whether a rise in the price of a legally traded good will exacerbate conflict. We exploit exogenous price shocks for coffee and oil to test this hypothesis, using data on politically-motivated violence in Colombia over 1988 to 2004. We find that a drop in coffee prices during the 1990s led to a disproportionate rise in conflict in the coffee areas. Poverty dynamics follow a similar pattern, while substitution into drug crops do not, which suggests that it is the fall in income rather than the drug trade that fuelled this effect. In contrast, we find that oil prices are positively related to clashes with government forces, and that state revenue is used to strengthen military presence in oil areas. Our results suggest that the income channel is critical in determining how price shocks to labor-intensive commodities affect insurgency. However, for capital-intensive goods, the revenue effect predominates in mediating how the value of the commodity affects violence.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by CERAC -CENTRO DE RECURSOS PARA EL ANÁLISIS DE CONFLICTOS- in its series DOCUMENTOS DE CERAC with number 002024.
Date of creation: 13 Dec 2006
Date of revision:
Contact details of provider:
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Marianne Bertrand & Esther Duflo & Sendhil Mullainathan, 2004.
"How Much Should We Trust Differences-in-Differences Estimates?,"
The Quarterly Journal of Economics,
MIT Press, vol. 119(1), pages 249-275, February.
- Marianne Bertrand & Esther Duflo & Sendhil Mullainathan, 2002. "How Much Should We Trust Differences-in-Differences Estimates?," NBER Working Papers 8841, National Bureau of Economic Research, Inc.
- Mehlum, Halvor & Moene, Karl-Ove & Torvik, Ragnar, 2003.
"Institutions and the resource curse,"
29/2002, Oslo University, Department of Economics.
- Halvor Mehlum & Karl Moene & Ragnar Torvik, 2002. "Institutions and the resource curse," Development and Comp Systems 0210003, EconWPA.
- Halvor Mehlum & Karl Moene & Ragnar Torvik, 2002. "Institutions and the resource curse," GE, Growth, Math methods 0210004, EconWPA.
- Halvor Mehlum & Karl Moene & Ragnar Torvik, 2004. "Institutions and the Resource Curse," DEGIT Conference Papers c009_012, DEGIT, Dynamics, Economic Growth, and International Trade.
- Barron, Patrick & Kaiser, Kai & Pradhan, Menno, 2004. "Local conflict in Indonesia : Measuring incidence and identifying patterns," Policy Research Working Paper Series 3384, The World Bank.
- Collier, Paul & Hoeffler, Anke, 1998. "On Economic Causes of Civil War," Oxford Economic Papers, Oxford University Press, vol. 50(4), pages 563-73, October.
- Jorge Restrepo, Michael Spagat and Juan Vargas, 2003.
"The Dynamics of the Colombian Civil Conflict: A New Data Set,"
Royal Holloway, University of London: Discussion Papers in Economics
03/12, Department of Economics, Royal Holloway University of London, revised Dec 2003.
- Jorge Restrepo & Michael Spagat & Juan Vargas, 2004. "The Dynamics of the Columbian Civil Conflict: A New Dataset," Homo Oeconomicus, Institute of SocioEconomics, vol. 21, pages 396-429.
- Restrepo, Jorge & Spagat, Michael & Vargas, Juan F, 2003. "The Dynamics of the Colombian Civil Conflict: A New Data Set," CEPR Discussion Papers 4108, C.E.P.R. Discussion Papers.
- Jorge Restrepo & Michael Spagat & Juan Vargas, 2004. "The Dynamics of the Colombian Civil Conflict: A New Data Set," Royal Holloway, University of London: Discussion Papers in Economics 04/10, Department of Economics, Royal Holloway University of London, revised Jul 2004.
- Robinson, James A. & Torvik, Ragnar & Verdier, Thierry, 2006.
"Political foundations of the resource curse,"
Journal of Development Economics,
Elsevier, vol. 79(2), pages 447-468, April.
- James A. Robinson & Ragnar Torvik & Thierry Verdier, 2003. "Politcal Foundations of the Resource Curse," DELTA Working Papers 2003-33, DELTA (Ecole normale supérieure).
- Robinson, James A & Torvik, Ragnar & Verdier, Thierry, 2002. "Political Foundations of the Resource Curse," CEPR Discussion Papers 3422, C.E.P.R. Discussion Papers.
- Paul Collier & Anke Hoeffler, 2004.
"Greed and Grievance in Civil War,"
Development and Comp Systems
- Jeffrey D. Sachs & Andrew M. Warner, 1995.
"Natural Resource Abundance and Economic Growth,"
NBER Working Papers
5398, National Bureau of Economic Research, Inc.
- Deininger, Klaus, 2003. "Causes and consequences of civil strife - micro-level evidence from Uganda," Policy Research Working Paper Series 3045, The World Bank.
- Edward Miguel & Shanker Satyanath & Ernest Sergenti, 2004. "Economic Shocks and Civil Conflict: An Instrumental Variables Approach," Journal of Political Economy, University of Chicago Press, vol. 112(4), pages 725-753, August.
- Do, Quy-Toan & Iyer, Lakshmi, 2007. "Poverty, social divisions, and conflict in Nepal," Policy Research Working Paper Series 4228, The World Bank.
- Daniele Giovannucci & José Leibovich & Diego Pizano & Banco Mundial, 2002. "Colombia Coffee Sector Study," DOCUMENTOS CEDE 002135, UNIVERSIDAD DE LOS ANDES-CEDE.
- Sachs, Jeffrey D. & Warner, Andrew M., 1999. "The big push, natural resource booms and growth," Journal of Development Economics, Elsevier, vol. 59(1), pages 43-76, June.
- Grossman, Herschel I, 1991. "A General Equilibrium Model of Insurrections," American Economic Review, American Economic Association, vol. 81(4), pages 912-21, September.
- Olga Shemyakina, 2006.
"The Effect of Armed Conflict on Accumulation of Schooling: Results from Tajikistan,"
HiCN Working Papers
12, Households in Conflict Network.
- Shemyakina, Olga, 2011. "The effect of armed conflict on accumulation of schooling: Results from Tajikistan," Journal of Development Economics, Elsevier, vol. 95(2), pages 186-200, July.
- Patricia Justino, 2012.
"Shared Societies and Armed Conflict: Costs, Inequality and the Benefits of Peace,"
HiCN Working Papers
125, Households in Conflict Network.
- Patricia Justino, 2012. "Shared Societies and Armed Conflict: Costs, Inequality and the Benefits of Peace," Working Papers 2012/35, Maastricht School of Management.
- Ahmed Saber Mahmud & Juan F. Vargas, 2008.
"Combatant recruitment and the outcome of war,"
DOCUMENTOS DE TRABAJO
005029, UNIVERSIDAD DEL ROSARIO.
- Poelhekke, Steven & van der Ploeg, Frederick, 2010.
"Do Natural Resources Attract FDI? Evidence from Non-Stationary Sector-Level Data,"
CEPR Discussion Papers
8079, C.E.P.R. Discussion Papers.
- Steven Poelhekke & Frederick van der Ploeg, 2010. "Do Natural Resources Attract FDI? Evidence from non-stationary sector level data," DNB Working Papers 266, Netherlands Central Bank, Research Department.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Alonso Tobón).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.