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The impact of social heterogeneity and commodity price shocks on civil conflicts

José-Manuel Giménez-Gómez () and Yitagesu-Zewdu Zergawu

Journal of Policy Modeling, 2018, vol. 40, issue 5, 959-997

Abstract: Do exogenous economic shocks promote civil conflicts directly? Do they affect all the societies alike? The current approach presents a large sample panel data evidence not only on the effect of commodity export price shocks on conflict incidence, rather than onsets, but also on the joint impact of both ethnic and religious polarization and fractionalization on political instability. In this regard, we find out that in ethnically polarized societies, the commodity export price shocks increase violence. Nonetheless, in ethnically and religiously fractionalized societies (as well as religiously polarized), the effect of commodity export price shocks on civil conflicts depends on the type of income shocks and category of commodity. These findings contribute to the existing literature by illuminating the compound effect of both income shocks and social diversity on intrastate conflicts.

Keywords: Economic shocks; Conflict; Ethnicity; Polarization; Fractonalization (search for similar items in EconPapers)
JEL-codes: D74 O11 O17 (search for similar items in EconPapers)
Date: 2018
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Handle: RePEc:eee:jpolmo:v:40:y:2018:i:5:p:959-997