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Oil, Natural Gas, and Intrastate Conflict: Does Ownership Matter?

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  • Tim Wegenast

Abstract

The impact of natural resources on intrastate violence has been increasingly analyzed in the peace and conflict literature. Surprisingly, little quantitative evidence has been gathered on the effects of the resource-ownership structure on internal violence. This article uses a novel data set on oil and natural gas property rights, covering 40 countries during the period 1989--2010. The results of regression analyses employing logit models reveal that the curvilinear effect between hydrocarbon production and civil conflict onset—often found in previous studies—only applies to countries in which oil and gas is extracted by state-owned companies. The findings suggest that only state-controlled hydrocarbon production might entail peace-buying mechanisms such as specific clientelistic practices, patronage networks, welfare policies, and/or coercion. At the same time, it seems that greed and grievance are more pronounced whenever resources lie in the hands of the state. Exploring the within-country variation, further analyses reveal that divergent welfare spending patterns are likely to be one causal channel driving the relationship between resource ownership and internal violence.

Suggested Citation

  • Tim Wegenast, 2016. "Oil, Natural Gas, and Intrastate Conflict: Does Ownership Matter?," International Interactions, Taylor & Francis Journals, vol. 42(1), pages 31-55, January.
    • Handle: RePEc:taf:ginixx:v:42:y:2016:i:1:p:31-55
    DOI: 10.1080/03050629.2015.1046599
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    References listed on IDEAS

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    1. Dani Rodrik, 1998. "Has Globalization Gone Too Far?," Challenge, Taylor & Francis Journals, vol. 41(2), pages 81-94, March.
    2. Christa N. Brunnschweiler & Simone Valente, 2013. "Property Rights, Oil and Income Levels: Over a Century of Evidence," Working Paper Series 15613, Department of Economics, Norwegian University of Science and Technology.
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    Cited by:

    1. Matthew Costello, 2018. "Oil and Gas Rents and Civilian Violence in the Middle East and North Africa, 1990–2004: A Resource Curse, or Rentier Peace?," Social Sciences, MDPI, vol. 7(3), pages 1-20, March.
    2. Miremadi, Tahereh, 2020. "Coupling multilevel perspective with causal layered analysis on non-reflexive societies the case of socio-technical system of car fuel in Iran," Technological Forecasting and Social Change, Elsevier, vol. 155(C).

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