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Resource Rents, Institutions and Violent Civil Conflicts

Author

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  • Ibrahim Elbadawi

    () (The Economic Policy and Research Center, Dubai Economic Council, UAE; and ERF)

  • Raimundo Soto

    () (Dubai Economic Council and Universidad Catolica de Chile)

Abstract

Natural resources have been blamed for inducing slow growth and sparking civil conflicts and violence. This paper first develops a model to account for the hazard of armed civil conflicts as a manifestation of the natural resource curse which is mediated by the quality of both economic and political institutions. We then use recently published data on institutional quality and natural resource rents to measure the potential impact of the resource curse on violent civil conflicts using a panel of data for over 100 countries in the period 1970-2010. Our model explicitly accounts for the role of good economic and political institutions in deterring the recourse to violence as well as the extent to which they might weaken the resource rents effect.

Suggested Citation

  • Ibrahim Elbadawi & Raimundo Soto, 2013. "Resource Rents, Institutions and Violent Civil Conflicts," Working Papers 775, Economic Research Forum, revised Sep 2013.
  • Handle: RePEc:erg:wpaper:775
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    References listed on IDEAS

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    1. repec:nbr:nberch:14056 is not listed on IDEAS
    2. Carmignani, Fabrizio & Kler, Parvinder, 2016. "Surrounded by wars: Quantifying the role of spatial conflict spillovers," Economic Analysis and Policy, Elsevier, vol. 49(C), pages 7-16.
    3. Morck, Randall & Nakamura, Masao, 2018. "Japan's ultimately unaccursed natural resources-financed industrialization," Journal of the Japanese and International Economies, Elsevier, vol. 47(C), pages 32-54.
    4. Baier, Jessica & Baten, J�rg, 2017. "Silver, Murder, and Institutions: Did the "Curse of Resources" impact on Homicide Rates? Global evidence since 1890," CEPR Discussion Papers 12397, C.E.P.R. Discussion Papers.
    5. repec:bla:coecpo:v:35:y:2017:i:3:p:532-541 is not listed on IDEAS

    More about this item

    JEL classification:

    • Q34 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Natural Resources and Domestic and International Conflicts
    • Q38 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Government Policy (includes OPEC Policy)
    • E02 - Macroeconomics and Monetary Economics - - General - - - Institutions and the Macroeconomy

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