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Globalization and Conflicts: the Good, the Bad, and the Ugly of Corporations in Africa

Author

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  • Tommaso Sonno

Abstract

Using a novel georeferenced dataset on the affiliates and headquarters of multinational enterprises between 2007 and 2018 together with georeferenced conflict data for the African continent, this work establishes a causal link between the activities of multinational enterprises and violent conflicts: multinational activity increases the number of conflicts. This particularly applies to sectors intense in scarce resources, especially land. As farming is the primary source of food and income for Africans, land-intensive activity on the part of multinationals increases local grievances, escalating to violent actions. These effects are magnified in areas targeted for large-scale land acquisitions.

Suggested Citation

  • Tommaso Sonno, 2025. "Globalization and Conflicts: the Good, the Bad, and the Ugly of Corporations in Africa," The Economic Journal, Royal Economic Society, vol. 135(668), pages 1108-1140.
    • Handle: RePEc:oup:econjl:v:135:y:2025:i:668:p:1108-1140.
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    File URL: http://hdl.handle.net/10.1093/ej/ueae103
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    Cited by:

    1. Battiston, Giacomo & Bizzarri, Matteo & Franceschin, Riccardo, 2025. "Third-party interest, resource value, and the likelihood of conflict," European Journal of Political Economy, Elsevier, vol. 86(C).
    2. Del Prete, Davide & Di Maio, Michele & Rahman, Aminur, 2023. "Firms amid conflict: Performance, production inputs, and market competition," Journal of Development Economics, Elsevier, vol. 164(C).
    3. Vrolijk, Kasper, 2023. "How does globalisation affect social cohesion?," IDOS Discussion Papers 5/2023, German Institute of Development and Sustainability (IDOS).
    4. Sonno, Tommaso & Zufacchi, Davide, 2022. "Epidemics and rapacity of multinational companies," LSE Research Online Documents on Economics 117802, London School of Economics and Political Science, LSE Library.
    5. Mariapia Mendola & Giovanni Prarolo & Tommaso Sonno, 2025. "Curse or blessing? multinational corporations and labor market outcomes in Africa," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 161(1), pages 339-371, February.
    6. Hoekman, Bernard & Sanfilippo, Marco & Tambussi, Margherita, 2023. "Foreign Direct Investment and Structural Transformation in Africa," CEPR Discussion Papers 17838, C.E.P.R. Discussion Papers.
    7. Giacomo Battiston & Matteo Bizzarri & Riccardo Franceschin, 2024. "Third parties and the non-monotonicity of the resource curse: Evidence from US military influence and oil value," CSEF Working Papers 701, Centre for Studies in Economics and Finance (CSEF), University of Naples, Italy.
    8. Dominic Rohner, 2025. "Conflict," CESifo Working Paper Series 12035, CESifo.

    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
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • 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

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