Globalization and conflicts: the good, the bad and the ugly of corporations in Africa

Sonno, Tommaso

Globalization and conflicts: the good, the bad and the ugly of corporations in Africa

LSE Research Online Documents on Economics from London School of Economics and Political Science, LSE Library

Abstract: Using georeferenced data on the affiliates and headquarters of multinational enterprises together with georeferenced conflict data, this work is the first to establish a causal link between the activities of multinational enterprises and violence. The results indicate that activities which increase local human capital, such as education and health, decrease the probability of civil conflict, while the activity of sectors intense in scarce resources, in particular forestry, increases conflict. The increase in the likelihood of conflict is amplified especially in areas where the leading ethnic groups can place the burden of land deals on unrepresented groups.

Keywords: multinationals; civil conflict; FDI; ethnic minority (search for similar items in EconPapers)
JEL-codes: C23 D74 F23 L70 O13 (search for similar items in EconPapers)
Pages: 55 pages
Date: 2020-01
New Economics Papers: this item is included in nep-afr, nep-dev and nep-int
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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http://eprints.lse.ac.uk/108225/ Open access version. (application/pdf)

Related works:
Working Paper: Globalization and conflicts: the good, the bad and the ugly of corporations in Africa (2020)
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Persistent link: https://EconPapers.repec.org/RePEc:ehl:lserod:108225

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