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The Impact of Fuel Ownership on Intrastate Violence

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  • Tim Wegenast

    () (GIGA German Institute of Global and Area Studies)

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 paper uses a novel dataset 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 production is mainly state controlled. The findings suggest that only state-owned hydrocarbons may 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, 2013. "The Impact of Fuel Ownership on Intrastate Violence," GIGA Working Paper Series 225, GIGA German Institute of Global and Area Studies.
  • Handle: RePEc:gig:wpaper:225
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    File URL: http://www.giga-hamburg.de/dl/download.php?d=/content/publikationen/pdf/wp225_wegenast.pdf
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    References listed on IDEAS

    as
    1. Arezki, Rabah & Brückner, Markus, 2011. "Oil rents, corruption, and state stability: Evidence from panel data regressions," European Economic Review, Elsevier, vol. 55(7), pages 955-963.
    2. Christa N. Brunnschweiler & Erwin H. Bulte, 2009. "Natural resources and violent conflict: resource abundance, dependence, and the onset of civil wars," Oxford Economic Papers, Oxford University Press, vol. 61(4), pages 651-674, October.
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    Keywords

    Natural resources; intrastate conflict; minor civil war; oil; gas; ownership structure; national oil companies.;

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