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Landmines and Poverty: IV Evidence from Mozambique

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  • Merrouche Ouarda

    () (EUI)

Abstract

The International Campaign to Ban Landmines production and use estimates that there are more than 80 billion landmines in the ground in more than 80 countries. Despite the scale of the problem and large investments by OECD countries to clear mines in low income countries, the economic consequences of landmine contamination have been so far unexamined by economists working on the economics of wars, perhaps due to the lack of data thus far. This paper exploits a unique dataset on landmine contamination intensity covering 126 Mozambican districts. Because landmines (unlike other weapons) are used as a weapon of choice to protect territories, the empirical strategy uses an indicator of distance to strategic borders as an instrumental variable to correct for selection in landmine placement. Instrumental variables estimates indicate a large effect of landmine contamination on poverty and consumption several years after the ceasefire. Hence, despite the very high cost to clear a mine a conservative costbenefit evaluation of the national de-mining program indicates that the program generates a large positive return.

Suggested Citation

  • Merrouche Ouarda, 2008. "Landmines and Poverty: IV Evidence from Mozambique," Peace Economics, Peace Science, and Public Policy, De Gruyter, vol. 14(1), pages 1-18, April.
  • Handle: RePEc:bpj:pepspp:v:14:y:2008:i:1:n:2
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    References listed on IDEAS

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    1. Rosenzweig, Mark R. & Wolpin, Kenneth I., 1988. "Migration selectivity and the effects of public programs," Journal of Public Economics, Elsevier, vol. 37(3), pages 265-289, December.
    2. Massimo Guidolin & Eliana La Ferrara, 2007. "Diamonds Are Forever, Wars Are Not: Is Conflict Bad for Private Firms?," American Economic Review, American Economic Association, vol. 97(5), pages 1978-1993, December.
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    Cited by:

    1. Domingues Patrick, 2011. "A Database on the Mozambican Civil War," Peace Economics, Peace Science, and Public Policy, De Gruyter, vol. 17(1), pages 1-32, May.
    2. Stergios Skaperdas, 2011. "The costs of organized violence: a review of the evidence," Economics of Governance, Springer, vol. 12(1), pages 1-23, March.
    3. Anderton,Charles H. & Carter,John R., 2009. "Principles of Conflict Economics," Cambridge Books, Cambridge University Press, number 9780521875578, December.
    4. Sevastianova Daria, 2009. "Impact of War on Country per Capita GDP: A Descriptive Analysis," Peace Economics, Peace Science, and Public Policy, De Gruyter, vol. 15(1), pages 1-28, December.
    5. Nathan Fiala & Stergios Skaperdas, 2011. "Economic Perspectives on Civil Wars," Chapters, in: Christopher J. Coyne & Rachel L. Mathers (ed.), The Handbook on the Political Economy of War, chapter 10, Edward Elgar Publishing.
    6. World Bank Group, 2015. "Toward Solutions for Youth Employment," World Bank Other Operational Studies 23261, The World Bank.

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