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Greed and Grievance in Civil War

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  • Paul Collier

    (Centre for the Study of African Economies)

  • Anke Hoeffler

    (Centre for the Study of African Economies)

Abstract

We investigate the causes of civil war, using a new data set of wars during 1960-99. We test a `greed’ theory focusing on the ability to finance rebellion, against a`grievance’ theory focusing on ethnic and religious divisions, political repression and inequality. We find that greed considerably outperforms grievance. Consistent with the greed theory, both dependence upon primary commodity exports and a large diaspora substantially increase the risk of conflict. Inconsistent with the grievance theory, greater ethnic and religious diversity reduce the risk of conflict. The results are robust to correction for outliers, alternative variable definition, and variations in estimation method.

Suggested Citation

  • Paul Collier & Anke Hoeffler, 2004. "Greed and Grievance in Civil War," Development and Comp Systems 0409007, University Library of Munich, Germany.
  • Handle: RePEc:wpa:wuwpdc:0409007
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    More about this item

    Keywords

    Conflict; Development; Natural Resources; Panel Data;
    All these keywords.

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions; Probabilities
    • D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances; Revolutions
    • H56 - Public Economics - - National Government Expenditures and Related Policies - - - National Security and War
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products

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