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Regional Inequality and Internal Conflict

  • Christian Lessmann

This paper studies the influence of interregional inequality within countries on internal con-flicts. Regional inequalities are measured by the population-weighted coefficient of variation of regional GDP per capita. As the main innovation, I use a panel data set of country-level re- gional inequalities, which covers 56 countries (835 subnational regions) between 1980 and 2009. I also consider a broader cross-section data set for the year 2005, which covers 110 countries (1569 subnational regions). Conflict is measured by the incidence of civil war (UCDP/PRIO data) and a risk measure of internal conflict (war, terrorism, and riots) provided by the PRS Group’s International Country Risk Guide. Logit estimations are employed as well as OLS fixed effects panel regressions. I find that regional inequalities increase the risk of internal conflict.

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Paper provided by CESifo Group Munich in its series CESifo Working Paper Series with number 4112.

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Date of creation: 2013
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Handle: RePEc:ces:ceswps:_4112
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  1. Christian Lessmann, 2009. "Fiscal decentralization and regional disparity: evidence from cross-section and panel data," Environment and Planning A, Pion Ltd, London, vol. 41(10), pages 2455-2473, October.
  2. Collier, Paul & Hoeffler, Anke, 2000. "Greed and grievance in civil war," Policy Research Working Paper Series 2355, The World Bank.
  3. Deininger, Klaus & Squire, Lyn, 1996. "A New Data Set Measuring Income Inequality," World Bank Economic Review, World Bank Group, vol. 10(3), pages 565-91, September.
  4. Hansen, Nico & Kessler, Anke, 2004. "Interregional Redistribution and Mobility in Federations: A Positive Approach," CEPR Discussion Papers 4576, C.E.P.R. Discussion Papers.
  5. Kanbur, Ravi & Venables, Anthony J., 2005. "SPATIAL INEQUALITY AND DEVELOPMENT Overview of UNU-WIDER Project," Working Papers 127127, Cornell University, Department of Applied Economics and Management.
  6. repec:oup:qjecon:v:112:y:1997:i:4:p:1027-56 is not listed on IDEAS
  7. Christopher Cramer, 2003. "Does inequality cause conflict?," Journal of International Development, John Wiley & Sons, Ltd., vol. 15(4), pages 397-412.
  8. Lotta Harbom & Peter Wallensteen, 2010. "Armed Conflicts, 1946—2009," Journal of Peace Research, Peace Research Institute Oslo, vol. 47(4), pages 501-509, July.
  9. Kanbur, Ravi & Venables, Anthony J. (ed.), 2005. "Spatial Inequality and Development," OUP Catalogue, Oxford University Press, number 9780199278633, July.
  10. Nicola Gennaioli & Rafael LaPorta & Florencio Lopez-de-Silanes & Andrei Shleifer, . "Human Capital and Regional Development," Working Paper 19522, Harvard University OpenScholar.
  11. repec:oup:qjecon:v:112:y:1997:i:4:p:1057-90 is not listed on IDEAS
  12. Gabor Kezdi, 2005. "Robus Standard Error Estimation in Fixed-Effects Panel Models," Econometrics 0508018, EconWPA.
  13. Lessmann, Christian, 2014. "Spatial inequality and development — Is there an inverted-U relationship?," Journal of Development Economics, Elsevier, vol. 106(C), pages 35-51.
  14. Christa Deiwiks & Lars-Erik Cederman & Kristian Skrede Gleditsch, 2012. "Inequality and conflict in federations," Journal of Peace Research, Peace Research Institute Oslo, vol. 49(2), pages 289-304, March.
  15. repec:oup:restud:v:78:y::i:4:p:1345-1378 is not listed on IDEAS
  16. Ravi Kanbur & Tony Venables, 2005. "Introduction: Spatial inequality and development," Journal of Economic Geography, Oxford University Press, vol. 5(1), pages 1-2, January.
  17. repec:oup:qjecon:v:128:y:2012:i:1:p:105-164 is not listed on IDEAS
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