IDEAS home Printed from https://ideas.repec.org/p/iza/izadps/dp9731.html
   My bibliography  Save this paper

Identity Conflict with Cross-Border Spillovers

Author

Listed:
  • Bakshi, Dripto

    (Indian Statistical Institute)

  • Dasgupta, Indraneel

    (Indian Statistical Institute)

Abstract

We model simultaneous inter and within identity-group conflict in two territories connected by cross-territorial spill-overs. Within each territory, two groups contest the division of a group-specific public good, and all members contest the division of group income. Each group has a cross-border affiliate. Greater success (share) of its affiliate 'spills over' into higher efficiency of a group in inter-group conflict. We find that inter-group and total conflict move together within a territory, while within-group conflict and output move in the opposite direction. A unilateral increase in cross-border spill-over reduces inter-group conflict in the source territory but increases it in the destination; an equi-proportionate bilateral increase affects conflict in a non-monotone manner. Population increase in a territory, a larger minority, weaker property rights, higher relative labour productivity of the majority, may all increase inter-group conflict in the other territory. Community-neutral growth in labour productivity within a territory reduces inter-group conflict therein.

Suggested Citation

  • Bakshi, Dripto & Dasgupta, Indraneel, 2016. "Identity Conflict with Cross-Border Spillovers," IZA Discussion Papers 9731, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp9731
    as

    Download full text from publisher

    File URL: https://docs.iza.org/dp9731.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. José G. Montalvo & Marta Reynal-Querol, 2005. "Ethnic Polarization, Potential Conflict, and Civil Wars," American Economic Review, American Economic Association, vol. 95(3), pages 796-816, June.
    2. Francesco Caselli & Wilbur John Coleman II, 2013. "On The Theory Of Ethnic Conflict," Journal of the European Economic Association, European Economic Association, vol. 11, pages 161-192, January.
    3. Indraneel Dasgupta & Ravi Kanbur, 2005. "Community and anti-poverty targeting," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 3(3), pages 281-302, December.
    4. Kolmar, Martin & Rommeswinkel, Hendrik, 2013. "Contests with group-specific public goods and complementarities in efforts," Journal of Economic Behavior & Organization, Elsevier, vol. 89(C), pages 9-22.
    5. Easterly, William, 2001. "Can Institutions Resolve Ethnic Conflict?," Economic Development and Cultural Change, University of Chicago Press, vol. 49(4), pages 687-706, July.
    6. Dasgupta, Indraneel & Kanbur, Ravi, 2007. "Community and class antagonism," Journal of Public Economics, Elsevier, vol. 91(9), pages 1816-1842, September.
    7. Joan Esteban & Debraj Ray, 2011. "A Model Of Ethnic Conflict," Journal of the European Economic Association, European Economic Association, vol. 9(3), pages 496-521, June.
    8. Emmanuel Dechenaux & Dan Kovenock & Roman Sheremeta, 2015. "A survey of experimental research on contests, all-pay auctions and tournaments," Experimental Economics, Springer;Economic Science Association, vol. 18(4), pages 609-669, December.
    9. Joan Esteban & Debraj Ray, 2008. "On the Salience of Ethnic Conflict," American Economic Review, American Economic Association, vol. 98(5), pages 2185-2202, December.
    10. Dasgupta, Indraneel, 2009. "'Living' wage, class conflict and ethnic strife," Journal of Economic Behavior & Organization, Elsevier, vol. 72(2), pages 750-765, November.
    11. JoseG. Montalvo & Marta Reynal-Querol, 2008. "Discrete Polarisation with an Application to the Determinants of Genocides," Economic Journal, Royal Economic Society, vol. 118(533), pages 1835-1865, November.
    12. Dan Kovenock & Brian Roberson, 2010. "Conflicts with Multiple Battlefields," Purdue University Economics Working Papers 1246, Purdue University, Department of Economics.
    13. William Easterly & Roberta Gatti & Sergio Kurlat, 2006. "Development, democracy, and mass killings," Journal of Economic Growth, Springer, vol. 11(2), pages 129-156, June.
    14. Ernesto Dal Bó & Pedro Dal Bó, 2011. "Workers, Warriors, And Criminals: Social Conflict In General Equilibrium," Journal of the European Economic Association, European Economic Association, vol. 9(4), pages 646-677, August.
    15. Christopher S P Magee & Tansa George Massoud, 2011. "Openness and internal conflict," Journal of Peace Research, Peace Research Institute Oslo, vol. 48(1), pages 59-72, January.
    16. Maria Arbatskaya & Hugo Mialon, 2010. "Multi-activity contests," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 43(1), pages 23-43, April.
    17. Indraneel Dasgupta & Ravi Kanbur, 2011. "Does philanthropy reduce inequality?," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 9(1), pages 1-21, March.
    18. Steven Callander, 2007. "Bandwagons and Momentum in Sequential Voting," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 74(3), pages 653-684.
    19. Katz, Eliakim & Nitzan, Shmuel & Rosenberg, Jacob, 1990. "Rent-Seeking for Pure Public Goods," Public Choice, Springer, vol. 65(1), pages 49-60, April.
    20. Dripto Bakshi & Indraneel Dasgupta, 2018. "A model of dynamic conflict in ethnocracies," Defence and Peace Economics, Taylor & Francis Journals, vol. 29(2), pages 147-170, February.
    21. José Garcia Montalvo & Marta Reynal-Querol, 2004. "Ethnic polarization, potential conflict and civil wars," Economics Working Papers 770, Department of Economics and Business, Universitat Pompeu Fabra, revised Mar 2005.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Dripto Bakshi & Indraneel Dasgupta, 2021. "A Subscription vs. Appropriation Framework for Natural Resource Conflicts," World Scientific Book Chapters, in: Anil Markandya & Dirk Rübbelke (ed.), CLIMATE AND DEVELOPMENT, chapter 9, pages 257-307, World Scientific Publishing Co. Pte. Ltd..
    2. Bakshi, Dripto & Dasgupta, Indraneel, 2021. "Internal versus External Rent-Seeking with In-Group Inequality and Public Good Provision," IZA Discussion Papers 14871, Institute of Labor Economics (IZA).
    3. Dripto Bakshi & Indraneel Dasgupta, 2021. "Internal vs. external rent-seeking with in-group inequality and public good provision," Discussion Papers 2021-06, University of Nottingham, CREDIT.
    4. Dasgupta, Indraneel & Pal, Sarmistha, 2021. "Touch thee not: Group conflict, caste power and untouchability in rural India," Journal of Comparative Economics, Elsevier, vol. 49(2), pages 442-466.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Dasgupta, Indraneel & Mukherjee, Diganta, 2014. "Assimilation, Criminality and Ethnic Conflict," IZA Discussion Papers 7924, Institute of Labor Economics (IZA).
    2. Dripto Bakshi & Indraneel Dasgupta, 2018. "A model of dynamic conflict in ethnocracies," Defence and Peace Economics, Taylor & Francis Journals, vol. 29(2), pages 147-170, February.
    3. Indraneel Dasgupta & Ranajoy Guha Neogi, 2018. "Between-group contests over group-specific public goods with within-group fragmentation," Public Choice, Springer, vol. 174(3), pages 315-334, March.
    4. Dripto Bakshi & Indraneel Dasgupta, 2021. "A Subscription vs. Appropriation Framework for Natural Resource Conflicts," World Scientific Book Chapters, in: Anil Markandya & Dirk Rübbelke (ed.), CLIMATE AND DEVELOPMENT, chapter 9, pages 257-307, World Scientific Publishing Co. Pte. Ltd..
    5. Dasgupta, Indraneel & Pal, Sarmistha, 2021. "Touch thee not: Group conflict, caste power and untouchability in rural India," Journal of Comparative Economics, Elsevier, vol. 49(2), pages 442-466.
    6. Remi Jedwab & Noel D. Johnson & Mark Koyama, 2019. "Negative shocks and mass persecutions: evidence from the Black Death," Journal of Economic Growth, Springer, vol. 24(4), pages 345-395, December.
    7. Bakshi, Dripto & Dasgupta, Indraneel, 2021. "Internal versus External Rent-Seeking with In-Group Inequality and Public Good Provision," IZA Discussion Papers 14871, Institute of Labor Economics (IZA).
    8. Dripto Bakshi & Indraneel Dasgupta, 2021. "Internal vs. external rent-seeking with in-group inequality and public good provision," Discussion Papers 2021-06, University of Nottingham, CREDIT.
    9. Bhaumik, Sumon K. & Chowdhury, Subhasish M. & Dimova, Ralitza & Fromell, Hanna, 2023. "Identity, Communication, and Conflict: An Experiment," IZA Discussion Papers 16020, Institute of Labor Economics (IZA).
    10. Ager, Philipp & Brückner, Markus, 2013. "Cultural diversity and economic growth: Evidence from the US during the age of mass migration," European Economic Review, Elsevier, vol. 64(C), pages 76-97.
    11. De Luca, Giacomo & Sekeris, Petros G. & Vargas, Juan F., 2018. "Beyond divide and rule: Weak dictators, natural resources and civil conflict," European Journal of Political Economy, Elsevier, vol. 53(C), pages 205-221.
    12. Christopher Blattman & Edward Miguel, 2010. "Civil War," Journal of Economic Literature, American Economic Association, vol. 48(1), pages 3-57, March.
    13. Rohner, Dominic, 2011. "Reputation, group structure and social tensions," Journal of Development Economics, Elsevier, vol. 96(2), pages 188-199, November.
    14. Christopher Blattman, 2009. "Civil War: A Review of Fifty Years of Research," Working Papers id:2231, eSocialSciences.
    15. Rohner, D., 2006. "Information, Reputation and Ethnic Conflict," Cambridge Working Papers in Economics 0658, Faculty of Economics, University of Cambridge.
    16. Matija Kovacic & Claudio Zoli, 2021. "Ethnic distribution, effective power and conflict," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 57(2), pages 257-299, August.
    17. Debraj Ray, 2010. "Uneven Growth: A Framework for Research in Development Economics," Journal of Economic Perspectives, American Economic Association, vol. 24(3), pages 45-60, Summer.
    18. Casey, Gregory P. & Owen, Ann L., 2014. "Inequality and Fractionalization," World Development, Elsevier, vol. 56(C), pages 32-50.
    19. Martin Kolmar & Hendrik Rommeswinkel, 2020. "Group size and group success in conflicts," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 55(4), pages 777-822, December.
    20. Nicolas Berman & Mathieu Couttenier & Raphael Soubeyran, 2021. "Fertile Ground for Conflict," Journal of the European Economic Association, European Economic Association, vol. 19(1), pages 82-127.

    More about this item

    Keywords

    cross-border spillover; simultaneous between and within group contest; identity; ethnic conflict; globalization; ethnic polarization; community-biased growth;
    All these keywords.

    JEL classification:

    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances; Revolutions
    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • O20 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:iza:izadps:dp9731. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Holger Hinte (email available below). General contact details of provider: https://edirc.repec.org/data/izaaade.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.