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Conflict and Production: An Application to Natural Resources

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  • Wick, Katharina

Abstract

We present a Stackelberg model of conflict, in which contestants have limited endowments to be put in two separate sectors, thus incorporating salient features of many conflicts. The model is applied to the case of conflict over natural resources. Consistent with amounting empirical evidence regarding a so-called "resource curse", we find that the relation between conflict intensity and resource rents is non-monotonous, and that the economy's income growth rate may be negatively affected by resource abundance.

Suggested Citation

  • Wick, Katharina, 2007. "Conflict and Production: An Application to Natural Resources," Proceedings of the German Development Economics Conference, Göttingen 2007 34, Verein für Socialpolitik, Research Committee Development Economics.
  • Handle: RePEc:zbw:gdec07:6557
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    Cited by:

    1. Mare Sarr & Katharina Wick, 2010. "Resources, conflict and development choices: public good provision in resource rich economies," Economics of Governance, Springer, pages 183-205.
    2. Libman, Alexander Mikhailovich, 2009. "Эндогенные Границы И Распределение Власти В Федерациях И Международных Сообществах
      [ENDOGENOUS BOUNDARIES AND DISTRIBUTION OF POWER In the Federation]
      ," MPRA Paper 16473, University Library of Munich, Germany.
    3. Wick, A.K., 2008. "Conflicts, development and natural resources : An applied game theoretic approach," Other publications TiSEM 9dfd8863-301e-477b-9999-5, Tilburg University, School of Economics and Management.

    More about this item

    Keywords

    Resource curse; exhaustible resources; civil war; economic performance and resources;

    JEL classification:

    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Q32 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Exhaustible Resources and Economic Development
    • D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances; Revolutions

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