Natural resource extraction and civil conflict
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.
If 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.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
References listed on IDEAS
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.:
- Macartan Humphreys, 2005. "Natural Resources, Conflict, and Conflict Resolution," Journal of Conflict Resolution, Peace Science Society (International), vol. 49(4), pages 508-537, August.
- Bulte, Erwin & Wick, Katharina, 2005.
"Contesting Resources - Rent Seeking, Conflict and the Natural Resource Curse,"
Proceedings of the German Development Economics Conference, Kiel 2005
36, Verein für Socialpolitik, Research Committee Development Economics.
- Katharina Wick & Erwin Bulte, 2006. "Contesting resources – rent seeking, conflict and the natural resource curse," Public Choice, Springer, vol. 128(3), pages 457-476, September.
- Timothy Besley & Torsten Persson, 2009.
"The Incidence of Civil War: Theory and Evidence,"
STICERD - Economic Organisation and Public Policy Discussion Papers Series
005, Suntory and Toyota International Centres for Economics and Related Disciplines, LSE.
- Timothy J. Besley & Torsten Persson, 2008. "The Incidence of Civil War: Theory and Evidence," NBER Working Papers 14585, National Bureau of Economic Research, Inc.
- Besley, Timothy J. & Persson, Torsten, 2008. "The Incidence of Civil War: Theory and Evidence," CEPR Discussion Papers 7101, C.E.P.R. Discussion Papers.
- Deininger, Klaus, 2003. "Causes and consequences of civil strife - micro-level evidence from Uganda," Policy Research Working Paper Series 3045, The World Bank.
- Takamasa Akiyama & John Baffes & Donald Larson & Panos Varangis, 2001. "Commodity Market Reforms : Lessons of Two Decades," World Bank Publications, The World Bank, number 13852, July.
- PÃ¤ivi Lujala & Nils Petter Gleditsch & Elisabeth Gilmore, 2005. "A Diamond Curse?," Journal of Conflict Resolution, Peace Science Society (International), vol. 49(4), pages 538-562, August.
- Rubin, Barnett R., 2000. "The Political Economy of War and Peace in Afghanistan," World Development, Elsevier, vol. 28(10), pages 1789-1803, October.
- Bornhorst, Fabian & Gupta, Sanjeev & Thornton, John, 2009. "Natural resource endowments and the domestic revenue effort," European Journal of Political Economy, Elsevier, vol. 25(4), pages 439-446, December.
- Chassang, Sylvain & Miquel, Gerard PadrÃ³ i, 2009. "Economic Shocks and Civil War," Quarterly Journal of Political Science, now publishers, vol. 4(3), pages 211-228, October.
- Markus Bruckner & Antonio Ciccone, 2010. "International Commodities Prices, Growth and the Outbreak of Civil War in Sub-Saharan Africa," Working Papers 1008, BBVA Bank, Economic Research Department.
- 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.
- Stefano DellaVigna & Eliana La Ferrara, 2007.
"Detecting Illegal Arms Trade,"
NBER Working Papers
13355, National Bureau of Economic Research, Inc.
- Paul Collier & Anke Hoeffler, 2004.
"Greed and Grievance in Civil War,"
Development and Comp Systems
- Santiago Sanchez-Pages, 2005.
"On the Social Efficiency of Conflict,"
ESE Discussion Papers
97, Edinburgh School of Economics, University of Edinburgh.
- Oeindrila Dube & Juan F. Vargas, 2013. "Commodity Price Shocks and Civil Conflict: Evidence from Colombia," Review of Economic Studies, Oxford University Press, vol. 80(4), pages 1384-1421.
- Christopher Blattman & Edward Miguel, 2009.
NBER Working Papers
14801, National Bureau of Economic Research, Inc.
- Blattman, Christopher & Miguel, Edward, 2009. "Civil War," Center for International and Development Economics Research, Working Paper Series qt90n356hs, Center for International and Development Economics Research, Institute for Business and Economic Research, UC Berkeley.
- Christa N. Brunnschweiler & Erwin H. Bulte, 2009.
"Natural resources and violent conflict: resource abundance, dependence, and the onset of civil wars,"
Oxford Economic Papers,
Oxford University Press, vol. 61(4), pages 651-674, October.
- Christa N. Brunnschweiler & Erwin Bulte, 2008. "Natural Resources and Violent Conflict: Resource Abundance, Dependence and the Onset of Civil Wars," CER-ETH Economics working paper series 08/78, CER-ETH - Center of Economic Research (CER-ETH) at ETH Zurich.
- Christa N Brunnschweiler & Erwin H Bulte, 2009. "Natural Resources and Violent Conflict: Resource abundance, dependence and the onset of civil wars," OxCarre Working Papers 018, Oxford Centre for the Analysis of Resource Rich Economies, University of Oxford.
- Philip Verwimp, 2003. "The political economy of coffee, dictatorship and genocide," ULB Institutional Repository 2013/223341, ULB -- Universite Libre de Bruxelles.
- Verwimp, Philip, 2003. "The political economy of coffee, dictatorship, and genocide," European Journal of Political Economy, Elsevier, vol. 19(2), pages 161-181, June.
- Jeremy M. Weinstein, 2005. "Resources and the Information Problem in Rebel Recruitment," Journal of Conflict Resolution, Peace Science Society (International), vol. 49(4), pages 598-624, August.
- Markus Brückner & Antonio Ciccone, 2007.
"International commodity prices, growth and the outbreak of Civil War in Sub-Saharan Africa,"
Economics Working Papers
1053, Department of Economics and Business, Universitat Pompeu Fabra, revised Aug 2009.
- Markus Brückner & Antonio Ciccone, 2010. "International Commodity Prices, Growth and the Outbreak of Civil War in Sub-Saharan Africa," Economic Journal, Royal Economic Society, vol. 120(544), pages 519-534, 05.
- Markus Brückner & Antonio Ciccone, 2009. "International Commodity Prices, Growth, and the Outbreak of Civil War in Sub-Saharan Africa," Working Papers 2009-37, FEDEA.
When requesting a correction, please mention this item's handle: RePEc:eee:deveco:v:97:y:2012:i:1:p:24-31. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Shamier, Wendy)
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.