Income and armed civil conflict: An instrumental variables approach

Christa Brunnschweiler and Paivi Lujala
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Paivi Lujala: Norwegian University of Science and Technology

No 2015-06, University of East Anglia School of Economics Working Paper Series from School of Economics, University of East Anglia, Norwich, UK.

Abstract: The large empirical conflict literature has established a strong negative link between economic variables and the onset of an armed civil conflict. However, it has been hard to demonstrate a clear causality becasue of potential endogeneity issues. Using three new exogenous instruments for income per capita in IV estimations, we show that the negative effect of income per capita on the probability of conflict is consistently strong and larger than in conventional pooled OLS estimations.

Keywords: civil conflict; income; panel data; IV estimation (search for similar items in EconPapers)
JEL-codes: C26 D74 O10 (search for similar items in EconPapers)
Date: 2015-11
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Related works:
Journal Article: Income and Armed Civil Conflict: An Instrumental Variables Approach (2017)
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