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Resources, Conflict, and Economic Development in Africa

Achyuta Adhvaryu (), James Fenske (), Gaurav Khanna and Anant Nyshadham

No 24309, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: Natural resources have driven both growth and conflict in modern Africa. We model the interaction of parties engaged in potential conflict over such resources. The likelihood of conflict depends on both the absolute and relative resource endowments of the parties. Resources fuel conflict by raising the gains from expropriation and by increasing fighting strength. Economic prosperity, as a result, is a function of equilibrium conflict prevalence determined not just by a region's own resources but also by the resources of its neighbors. Using high-resolution spatial data on resources, conflicts, and nighttime illumination across the whole of sub-Saharan Africa, we find evidence confirming each of the model's predictions. Structural estimates of the model reveal that conflict equilibria are more prevalent where institutional quality (measured by, e.g., risk of expropriation, property rights, voice and accountability) is worse.

JEL-codes: D74 O13 Q34 (search for similar items in EconPapers)
Date: 2018-02
New Economics Papers: this item is included in nep-ene and nep-gro
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Published as Adhvaryu, Achyuta & Fenske, James & Khanna, Gaurav & Nyshadham, Anant, 2021. "Resources, conflict, and economic development in Africa," Journal of Development Economics, Elsevier, vol. 149(C).

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Journal Article: Resources, conflict, and economic development in Africa (2021) Downloads
Working Paper: Resources, Conflict, and Economic Development in Africa (2018) Downloads
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