Identity Conflict with Cross-Border Spillovers

Dripto Bakshi () and Indraneel Dasgupta ()
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Dripto Bakshi: Indian Statistical Institute

No 9731, IZA Discussion Papers from Institute of Labor Economics (IZA)

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.

Keywords: cross-border spillover; simultaneous between and within group contest; identity; ethnic conflict; globalization; ethnic polarization; community-biased growth (search for similar items in EconPapers)
JEL-codes: D72 D74 O10 O20 (search for similar items in EconPapers)
Pages: 37 pages
Date: 2016-02
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Published - published in: Defence and Peace Economics, 2020, 31 (7), 786-809

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Journal Article: Identity Conflict with Cross-Border Spillovers (2020)
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