Conflict and Production: An Application to Natural Resources

Katharina Wick

No 34, Proceedings of the German Development Economics Conference, Göttingen 2007 from Verein für Socialpolitik, Research Committee Development Economics

Abstract: We present a Stackelberg model of conflict, in which contestants have limited endowments to be put in two separate sectors, thus incorporating salient features of many conflicts. The model is applied to the case of conflict over natural resources. Consistent with amounting empirical evidence regarding a so-called "resource curse", we find that the relation between conflict intensity and resource rents is non-monotonous, and that the economy's income growth rate may be negatively affected by resource abundance.

Keywords: Resource curse; exhaustible resources; civil war; economic performance and resources (search for similar items in EconPapers)
JEL-codes: D74 O13 Q32 (search for similar items in EconPapers)
Date: 2007
New Economics Papers: this item is included in nep-agr, nep-dev, nep-ene and nep-env
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:gdec07:6557

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