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Diasporas and conflict

Author

Listed:
  • Fabio Mariani

    (IZA - Institute for the Study of Labor, UCL IRES - Institut de recherches économiques et sociales - UCL - Université Catholique de Louvain = Catholic University of Louvain, IZA - Institute for the Study of Labor - Institute for the Study of Labor (IZA) Bonn)

  • Marion Mercier

    (DIAL - Développement, institutions et analyses de long terme, LEDA-DIAL - Développement, Institutions et Modialisation - LEDa - Laboratoire d'Economie de Dauphine - IRD - Institut de Recherche pour le Développement - Université Paris Dauphine-PSL - PSL - Université Paris Sciences et Lettres - CNRS - Centre National de la Recherche Scientifique, LEDa - Laboratoire d'Economie de Dauphine - Université Paris Dauphine-PSL - PSL - Université Paris Sciences et Lettres)

  • Thierry Verdier

    (PJSE - Paris Jourdan Sciences Economiques - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - INRA - Institut National de la Recherche Agronomique - EHESS - École des hautes études en sciences sociales - ENPC - École nationale des ponts et chaussées - CNRS - Centre National de la Recherche Scientifique, PJSE - Paris Jourdan Sciences Economiques - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - INRA - Institut National de la Recherche Agronomique - EHESS - École des hautes études en sciences sociales - ENPC - École nationale des ponts et chaussées - CNRS - Centre National de la Recherche Scientifique, CEPR - Center for Economic Policy Research, CEPR - Centre for Economic Policy Research - Centre for Economic Policy Research)

Abstract

We build a model of conflict 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 conflict by transferring financial resources to its origin country. We find that the diaspora influences the war outcome and, above a certain size, contributes to the escalation of violence. Given the characteristics of the conflict 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. Finally, we develop two extensions of the model, respectively, accounting for endogenous migration and the possibility of migration from both groups. Overall, our theory can help us make sense of several features of the interaction between real-world diasporas and conflict.

Suggested Citation

  • Fabio Mariani & Marion Mercier & Thierry Verdier, 2018. "Diasporas and conflict," PSE-Ecole d'économie de Paris (Postprint) hal-01883362, HAL.
    • Handle: RePEc:hal:pseptp:hal-01883362
    DOI: 10.1093/jeg/lby014
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    Cited by:

    1. Emeline Bezin & Bastien Chabé-Ferret & David de la Croix, 2025. "Strategic Fertility, Education Choices, and Conflicts in Deeply Divided Societies," Journal of the European Economic Association, European Economic Association, vol. 23(2), pages 521-553.
    2. Fabio Mariani & Marion Mercier & Thierry Verdier, 2018. "Diasporas and conflict," Journal of Economic Geography, Oxford University Press, vol. 18(4), pages 761-793.
    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).

    More about this item

    Keywords

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    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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