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Cohesive Institutions and Political Violence

Author

Listed:
  • Thiemo Fetzer

    (University of Warwick,
    Pearson Institute at the University of Chicago
    CEPR)

  • Stephan Kyburz

    (Center for Global Development)

Abstract

Can institutionalized transfers of resource rents be a source of civil conflict? Are cohesive institutions better at managing conflicts over distribution? We exploit exogenous variation in revenue disbursements to local governments and use new data on local democratic institutions in Nigeria to answer these questions. There is a strong link between rents and conflict far away from the location of the resource. Conflict over distribution is highly organized, involving political militias, and concentrated in the extent to which local governments are non-cohesive. Democratically elected local governments significantly weaken the causal link between rents and political violence. Elections produce more cohesive institutions, and vastly limit the extent to which distributional conflict between groups breaks out following shocks to the rents. Throughout, we confirm these findings using individual level survey data.

Suggested Citation

  • Thiemo Fetzer & Stephan Kyburz, 2019. "Cohesive Institutions and Political Violence," Working Papers 503, Center for Global Development.
  • Handle: RePEc:cgd:wpaper:503
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    Cited by:

    1. Fetzer, Thiemo, 2019. "Can Workfare Programs Moderate Conflict? Evidence from India," CAGE Online Working Paper Series 436, Competitive Advantage in the Global Economy (CAGE).
    2. Jean Lacroix, 2020. "Ballots instead of Bullets? The effect of the Voting Rights Act on political violence," Working Papers CEB 20-007, ULB -- Universite Libre de Bruxelles.
    3. Fetzer, Thiemo, 2019. "Can Workfare Programs Moderate Conflict? Evidence from India," The Warwick Economics Research Paper Series (TWERPS) 1220, University of Warwick, Department of Economics.

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    More about this item

    Keywords

    conflict; ethnicity; natural resources; political economy; commodity prices;
    All these keywords.

    JEL classification:

    • Q33 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Resource Booms (Dutch Disease)
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • N52 - Economic History - - Agriculture, Natural Resources, Environment and Extractive Industries - - - U.S.; Canada: 1913-
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • L71 - Industrial Organization - - Industry Studies: Primary Products and Construction - - - Mining, Extraction, and Refining: Hydrocarbon Fuels

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