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Oil Prices and Interstate Conflict Behavior

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  • Cullen S. Hendrix

    (Peterson Institute for International Economics)

Abstract

Anecdotal evidence suggests high oil prices embolden leaders in oil-rich states to pursue more aggressive foreign policies. This article tests the conjecture in a sample of 153 countries for the time period 1947–2001. It finds strong evidence of a contingent effect of oil prices on interstate disputes, with high oil prices associated with signifi cant increases in dispute behavior among oil-exporting states, while having either a negative or null effect on dispute behavior in nonexporting states.

Suggested Citation

  • Cullen S. Hendrix, 2014. "Oil Prices and Interstate Conflict Behavior," Working Paper Series WP14-3, Peterson Institute for International Economics.
    • Handle: RePEc:iie:wpaper:wp14-3
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    References listed on IDEAS

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    More about this item

    Keywords

    oil; conflict; diplomacy; Russia; Iran; Venezuela; resource curse;
    All these keywords.

    JEL classification:

    • D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances; Revolutions
    • F51 - International Economics - - International Relations, National Security, and International Political Economy - - - International Conflicts; Negotiations; Sanctions
    • Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices

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