IDEAS home Printed from https://ideas.repec.org/a/aea/aecrev/v107y2017i6p1564-1610.html
   My bibliography  Save this article

This Mine Is Mine! How Minerals Fuel Conflicts in Africa

Author

Listed:
  • Nicolas Berman
  • Mathieu Couttenier
  • Dominic Rohner
  • Mathias Thoenig

Abstract

We combine georeferenced data on mining extraction of 14 minerals with information on conflict events at spatial resolution of 0.5 degree x 0.5 degree for all of Africa between 1997 and 2010. Exploiting exogenous variations in world prices, we find a positive impact of mining on conflict at the local level. Quantitatively, our estimates suggest that the historical rise in mineral prices (commodity super-cycle) might explain up to one-fourth of the average level of violence across African countries over the period. We then document how a fighting group's control of a mining area contributes to escalation from local to global violence. Finally, we analyze the impact of corporate practices and transparency initiatives in the mining industry.

Suggested Citation

  • Nicolas Berman & Mathieu Couttenier & Dominic Rohner & Mathias Thoenig, 2017. "This Mine Is Mine! How Minerals Fuel Conflicts in Africa," American Economic Review, American Economic Association, vol. 107(6), pages 1564-1610, June.
    • Handle: RePEc:aea:aecrev:v:107:y:2017:i:6:p:1564-1610
    Note: DOI: 10.1257/aer.20150774
    as

    Download full text from publisher

    File URL: https://www.aeaweb.org/articles?id=10.1257/aer.20150774
    Download Restriction: no
    File URL: https://www.aeaweb.org/content/file?id=4621
    Download Restriction: no
    File URL: https://www.aeaweb.org/articles/attachments?retrieve=boAqk6PUmfl651hP0W5MdyYxRPRao9Oo
    Download Restriction: no
    File URL: https://www.aeaweb.org/articles/attachments?retrieve=6vLXtjozVOJLAhc_unDO2vF5ncr-aKKw
    Download Restriction: Access to full text is restricted to AEA members and institutional subscribers.
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Macartan Humphreys, 2005. "Natural Resources, Conflict, and Conflict Resolution," Journal of Conflict Resolution, Peace Science Society (International), vol. 49(4), pages 508-537, August.
    2. Paolo Buonanno & Ruben Durante & Giovanni Prarolo & Paolo Vanin, 2015. "Poor Institutions, Rich Mines: Resource Curse in the Origins of the Sicilian Mafia," Economic Journal, Royal Economic Society, vol. 125(586), pages 175-202, August.
    3. Joan Esteban & Massimo Morelli & Dominic Rohner, 2015. "Strategic Mass Killings," Journal of Political Economy, University of Chicago Press, vol. 123(5), pages 1087-1132.
    4. Lei, Yu-Hsiang & Michaels, Guy, 2014. "Do giant oilfield discoveries fuel internal armed conflicts?," Journal of Development Economics, Elsevier, vol. 110(C), pages 139-157.
    5. Fernando M. Arag?n & Juan Pablo Rud, 2013. "Natural Resources and Local Communities: Evidence from a Peruvian Gold Mine," American Economic Journal: Economic Policy, American Economic Association, vol. 5(2), pages 1-25, May.
    6. Grossman, Herschel I. & Mendoza, Juan, 2003. "Scarcity and appropriative competition," European Journal of Political Economy, Elsevier, vol. 19(4), pages 747-758, November.
    7. Francesco Caselli & Massimo Morelli & Dominic Rohner, 2015. "The Geography of Interstate Resource Wars," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 130(1), pages 267-315.
    8. Jean-François Maystadt & Giacomo De Luca & Petros G. Sekeris & John Ulimwengu, 2014. "Mineral resources and conflicts in DRC: a case of ecological fallacy?," Oxford Economic Papers, Oxford University Press, vol. 66(3), pages 721-749.
    9. Halvor Mehlum & Karl Moene & Ragnar Torvik, 2006. "Institutions and the Resource Curse," Economic Journal, Royal Economic Society, vol. 116(508), pages 1-20, January.
    10. Anca M. Cotet & Kevin K. Tsui, 2013. "Oil and Conflict: What Does the Cross Country Evidence Really Show?," American Economic Journal: Macroeconomics, American Economic Association, vol. 5(1), pages 49-80, January.
    11. Carl Henrik Knutsen & Andreas Kotsadam & Eivind Hammersmark Olsen & Tore Wig, 2017. "Mining and Local Corruption in Africa," American Journal of Political Science, John Wiley & Sons, vol. 61(2), pages 320-334, April.
    12. Francesco Caselli & Wilbur John Coleman II, 2013. "On The Theory Of Ethnic Conflict," Journal of the European Economic Association, European Economic Association, vol. 11, pages 161-192, January.
    13. Ernesto Dal Bó & Pedro Dal Bó, 2011. "Workers, Warriors, And Criminals: Social Conflict In General Equilibrium," Journal of the European Economic Association, European Economic Association, vol. 9(4), pages 646-677, August.
    14. Joshua D. Angrist & Adriana D. Kugler, 2008. "Rural Windfall or a New Resource Curse? Coca, Income, and Civil Conflict in Colombia," The Review of Economics and Statistics, MIT Press, vol. 90(2), pages 191-215, May.
    15. Oeindrila Dube & Suresh Naidu, 2010. "Bases, Bullets, and Ballots: The Effect of U.S. Military Aid on Political Conflict in Colombia," Working Papers 197, Center for Global Development.
    16. van der Ploeg, Frederick & Rohner, Dominic, 2012. "War and natural resource exploitation," European Economic Review, Elsevier, vol. 56(8), pages 1714-1729.
    17. Fearon, James D. & Laitin, David D., 2003. "Ethnicity, Insurgency, and Civil War," American Political Science Review, Cambridge University Press, vol. 97(1), pages 75-90, February.
    18. Mathieu Couttenier & Pauline Grosjean & Marc Sangnier, 2017. "The Wild West IS Wild: The Homicide Resource Curse," Journal of the European Economic Association, European Economic Association, vol. 15(3), pages 558-585.
    19. repec:hal:spmain:info:hdl:2441/16jvuuvsuc939q3mrra3k9t0sa is not listed on IDEAS
    20. Michael D. König & Dominic Rohner & Mathias Thoenig & Fabrizio Zilibotti, 2017. "Networks in Conflict: Theory and Evidence From the Great War of Africa," Econometrica, Econometric Society, vol. 85, pages 1093-1132, July.
    21. Rafael Reuveny & John W. Maxwell, 2001. "Conflict and Renewable Resources," Journal of Conflict Resolution, Peace Science Society (International), vol. 45(6), pages 719-742, December.
    22. Francesco Caselli, 2012. "The Geography of Inter-State Resource Wars," 2012 Meeting Papers 1174, Society for Economic Dynamics.
    23. Paolo Buonanno & Ruben Durante & Giovanni Prarolo & Giovanni Prarolo, 2013. "Rich Mines, Poor Institutions: Resource Curse and the Origins of the Sicilian Mafia," Sciences Po publications info:hdl:2441/16jvuuvsuc9, Sciences Po.
    24. Michael L. Ross, 2004. "What Do We Know about Natural Resources and Civil War?," Journal of Peace Research, Peace Research Institute Oslo, vol. 41(3), pages 337-356, May.
    25. Mariaflavia Harari & Eliana La Ferrara, 2018. "Conflict, Climate, and Cells: A Disaggregated Analysis," The Review of Economics and Statistics, MIT Press, vol. 100(4), pages 594-608, October.
    26. Besley, Timothy & Reynal-Querol, Marta, 2014. "The Legacy of Historical Conflict: Evidence from Africa," American Political Science Review, Cambridge University Press, vol. 108(2), pages 319-336, May.
    27. Nicolas Berman & Mathieu Couttenier, 2015. "External Shocks, Internal Shots: The Geography of Civil Conflicts," The Review of Economics and Statistics, MIT Press, vol. 97(4), pages 758-776, October.
    28. Hodler, Roland, 2006. "The curse of natural resources in fractionalized countries," European Economic Review, Elsevier, vol. 50(6), pages 1367-1386, August.
    29. Oeindrila Dube & Juan F. Vargas, 2013. "Commodity Price Shocks and Civil Conflict: Evidence from Colombia," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 80(4), pages 1384-1421.
    30. Andersen, Jørgen Juel & Aslaksen, Silje, 2008. "Constitutions and the resource curse," Journal of Development Economics, Elsevier, vol. 87(2), pages 227-246, October.
    31. Nicolas Berman & Mathieu Couttenier & Dominic Rohner & Mathias Thoenig, 2017. "This Mine Is Mine! How Minerals Fuel Conflicts in Africa," American Economic Review, American Economic Association, vol. 107(6), pages 1564-1610, June.
    32. James D. Fearon, 2005. "Primary Commodity Exports and Civil War," Journal of Conflict Resolution, Peace Science Society (International), vol. 49(4), pages 483-507, August.
    33. Solomon M. Hsiang & Kyle C. Meng & Mark A. Cane, 2011. "Civil conflicts are associated with the global climate," Nature, Nature, vol. 476(7361), pages 438-441, August.
    34. James D. Fearon, 2004. "Why Do Some Civil Wars Last So Much Longer than Others?," Journal of Peace Research, Peace Research Institute Oslo, vol. 41(3), pages 275-301, May.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Morelli, Massimo & Rohner, Dominic, 2015. "Resource concentration and civil wars," Journal of Development Economics, Elsevier, vol. 117(C), pages 32-47.
    2. Camille Laville, 2018. "The econometrical causal analysis of internal conflicts: The evolutions of a growing literature [L’analyse économétrique des conflits internes par l’approche causale : les évolutions d’une littérat," Working Papers hal-01940461, HAL.
    3. Camille Laville, 2018. "The econometrical causal analysis of internal conflicts: The evolutions of a growing literature [L’analyse économétrique des conflits internes par l’approche causale : les évolutions d’une littérat," CERDI Working papers hal-01940461, HAL.
    4. Nemera Gebeyehu Mamo, 2018. "Essays on natural resources in Africa: local economic development, multi-ethnic coalitions and armed conflict," Economics PhD Theses 0518, Department of Economics, University of Sussex Business School.
    5. 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.
    6. Mahdi FAWAZ, 2020. "Ressources naturelles et guerres civiles au Moyen-Orient," Bordeaux Economics Working Papers 2020-09, Bordeaux School of Economics (BSE).
    7. Stoop, Nik & Verpoorten, Marijke & van der Windt, Peter, 2019. "Artisanal or industrial conflict minerals? Evidence from Eastern Congo," World Development, Elsevier, vol. 122(C), pages 660-674.
    8. Arinze Nwokolo, 2018. "Oil Price Shocks and Civil Conflict: Evidence from Nigeria," HiCN Working Papers 274, Households in Conflict Network.
    9. Axbard, Sebastian & Benshaul-Tolonen, Anja & Poulsen, Jonas, 2021. "Natural resource wealth and crime: The role of international price shocks and public policy," Journal of Environmental Economics and Management, Elsevier, vol. 110(C).
    10. Jeffrey R. Bloem, 2019. "Good Intentions Gone Bad? The Dodd-Frank Act and Conflict in Africa’s Great Lakes Region," HiCN Working Papers 300, Households in Conflict Network.
    11. Rabah Arezki & Sambit Bhattacharyya & Nemera Mamo, 2015. "Resource Discovery and Conflict in Africa: What do the data show?," OxCarre Working Papers 159, Oxford Centre for the Analysis of Resource Rich Economies, University of Oxford.
    12. van der Ploeg, Frederick & Rohner, Dominic, 2012. "War and natural resource exploitation," European Economic Review, Elsevier, vol. 56(8), pages 1714-1729.
    13. van der Ploeg, Frederick, 2018. "Political economy of dynamic resource wars," Journal of Environmental Economics and Management, Elsevier, vol. 92(C), pages 765-782.
    14. Adhvaryu, Achyuta & Fenske, James & Khanna, Gaurav & Nyshadham, Anant, 2021. "Resources, conflict, and economic development in Africa," Journal of Development Economics, Elsevier, vol. 149(C).
    15. Alex Dickson & Ian A MacKenzie & Petros G Sekeris, 2018. "The role of markets and preferences on resource conflicts," Working Papers 1819, University of Strathclyde Business School, Department of Economics.
    16. Roland Hodler & Paul Schaudt & Alberto Vesperoni, 2023. "Mining for Peace," CESifo Working Paper Series 10207, CESifo.
    17. Verme, Paolo & Schuettler, Kirsten, 2021. "The impact of forced displacement on host communities: A review of the empirical literature in economics," Journal of Development Economics, Elsevier, vol. 150(C).
    18. Lu, Yifan & Yamazaki, Satoshi, 2023. "Fish to fight: Does catching more fish increase conflicts in Indonesia?," World Development, Elsevier, vol. 170(C).
    19. Frederick van der Ploeg, 2011. "Natural Resources: Curse or Blessing?," Journal of Economic Literature, American Economic Association, vol. 49(2), pages 366-420, June.
    20. Lei, Yu-Hsiang & Michaels, Guy, 2014. "Do giant oilfield discoveries fuel internal armed conflicts?," Journal of Development Economics, Elsevier, vol. 110(C), pages 139-157.

    More about this item

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances; Revolutions
    • L70 - Industrial Organization - - Industry Studies: Primary Products and Construction - - - General
    • 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

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:aea:aecrev:v:107:y:2017:i:6:p:1564-1610. See general information about how to correct material in RePEc.

    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 CitEc recognized a bibliographic reference but did not link an item in RePEc 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Michael P. Albert (email available below). General contact details of provider: https://edirc.repec.org/data/aeaaaea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.