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Diasporas and Conflict

Author

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  • Verdier, Thierry
  • Mariani, Fabio
  • Mercier, Marion

Abstract

We build a model of confict in which two groups contest a resource and must decide on the optimal allocation of labor between fighting and productive activities. In this setting, a diaspora emanating from one of the two groups can get actively involved in the confict by transferring financial resources to its origin country. We find that the diaspora infuences the war outcome and, above a certain size, contributes to the escalation of violence. Given the characteristics of the confict equilibrium, the two groups of residents prefer to negotiate a peaceful settlement if there exists a sharing rule that makes both of them better off than war. We then identify the characteristics of the economy such that the diaspora acts as a peace-wrecking force or triggers a transition towards peace. A dynamic version of the model with an endogenous diaspora allows us to analyze the joint evolution of migration and confict in the home country, discuss the role of openness to migration and the possibility of multiple equilibria, and draw some policy implications.

Suggested Citation

  • Verdier, Thierry & Mariani, Fabio & Mercier, Marion, 2017. "Diasporas and Conflict," CEPR Discussion Papers 11926, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:11926
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    Cited by:

    1. Fabio Mariani & Marion Mercier & Thierry Verdier, 2018. "Diasporas and conflict," Journal of Economic Geography, Oxford University Press, vol. 18(4), pages 761-793.
    2. Emeline Bezin & Bastien Chabé-Ferret & David de la Croix, 2018. "Strategic Fertility, Education Choices and Conflicts in Deeply Divided Societies," LIDAM Discussion Papers IRES 2018011, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
    3. Mariani, Fabio & Mercier, Marion, 2021. "Immigration and crime: The role of self-selection and institutions," Journal of Economic Behavior & Organization, Elsevier, vol. 185(C), pages 538-564.
    4. Yuki, Kazuhiro, 2021. "Modernization, social identity, and ethnic conflict," European Economic Review, Elsevier, vol. 140(C).

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    More about this item

    Keywords

    Diasporas; Confict; International migration;
    All these keywords.

    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances; Revolutions
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development

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