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Do Giant Oilfield Discoveries Fuel Internal Armed Conflicts?

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  • Lei, Yu-Hsiang
  • Michaels, Guy

Abstract

We use new data to examine the effects of giant oilfield discoveries around the world since 1946. On average, these discoveries increase per capita oil production and oil exports by up to 50 percent. But these giant oilfield discoveries also have a dark side: they increase the incidence of internal armed conflict by about 5-8 percentage points. This increased incidence of conflict due to giant oilfield discoveries is especially high for countries that had already experienced armed conflicts or coups in the decade prior to discovery.

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Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 8620.

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Date of creation: Oct 2011
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Handle: RePEc:cpr:ceprdp:8620

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Keywords: Armed Conflict; Civil War; Natural Resources; Petroleum; Resource Curse;

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References

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  1. Acemoglu, Daron & Ticchi, Davide & Vindigni, Andrea, 2008. "A Theory of Military Dictatorships," IZA Discussion Papers 3392, Institute for the Study of Labor (IZA).
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  5. Franceso Caselli & Guy Michaels, 2009. "Do Oil Windfalls Improve Living Standards? Evidence from Brazil," OxCarre Working Papers 028, Oxford Centre for the Analysis of Resource Rich Economies, University of Oxford.
  6. Guidolin, Massimo & La Ferrara, Eliana, 2004. "Diamonds are Forever, Wars are Not: Is Conflict Bad for Private Firms?," CEPR Discussion Papers 4668, C.E.P.R. Discussion Papers.
  7. Guy Michaels, 2007. "The long term consequences of resource based specialization," LSE Research Online Documents on Economics 3249, London School of Economics and Political Science, LSE Library.
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Cited by:
  1. Francesco Caselli, 2012. "The Geography of Inter-State Resource Wars," 2012 Meeting Papers 1174, Society for Economic Dynamics.
  2. Francesco Caselli & Massimo Morelli & Dominic Rohner, 2013. "The geography of inter-state resource wars," LSE Research Online Documents on Economics 51548, London School of Economics and Political Science, LSE Library.
  3. Massimo Morelli & Dominic Rohner, 2013. "Resource Concentration and Civil Wars," Cahiers de Recherches Economiques du Département d'Econométrie et d'Economie politique (DEEP) 13.08, Université de Lausanne, Faculté des HEC, DEEP.
  4. Nicolas Berman & Mathieu Couttenier, 2012. "External shocks, internal shots - the geography of civil conflicts," IHEID Working Papers 13-2012, Economics Section, The Graduate Institute of International Studies.
  5. Andersen, Jørgen Juel & Aslaksen, Silje, 2013. "Oil and political survival," Journal of Development Economics, Elsevier, vol. 100(1), pages 89-106.

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