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Identity Conflict with Cross-Border Spillovers

Author

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  • 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
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    References listed on IDEAS

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    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.
    5. Bhowmick, Kanishka & Dasgupta, Indraneel & Pal, Sarmistha, 2024. "Within-Group Inequality and Caste-Based Crimes in India," IZA Discussion Papers 17383, Institute of Labor Economics (IZA).

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    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

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