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Culture, Economic Shocks and Conflict: Does trust moderate the effect of price shocks on conflict?

Author

Listed:
  • Gautam Bose

    (School of Economics, UNSW Business School)

  • Mitchell Choi

    (School of Economics, UNSW Business School)

  • Hasin Yousaf

    (School of Economics, UNSW Business School)

Abstract

This paper documents an important channel through which culture may affect conflict. We examine a panel of developing countries over fifty years and use price shocks to extractive commodities as an exogenous variation in the country's economic outlook. We find that these price shocks are less likely to result in the onset of civil war and conflict in countries that have higher levels of trust. However, we also find that trust does not moderate price shocks' effect on the cessation of conflict. Our study provides new empirical evidence on the interdependence of economic shocks and culture on conflict.

Suggested Citation

  • Gautam Bose & Mitchell Choi & Hasin Yousaf, 2021. "Culture, Economic Shocks and Conflict: Does trust moderate the effect of price shocks on conflict?," Discussion Papers 2021-03, School of Economics, The University of New South Wales.
  • Handle: RePEc:swe:wpaper:2021-02
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    File URL: http://research.economics.unsw.edu.au/RePEc/papers/2021-03.pdf
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    References listed on IDEAS

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    Keywords

    Trust; Economic shocks; Civil war; Conflict;
    All these keywords.

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