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The geography of natural resources, ethnic inequality and civil conflicts

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  • Lessmann, Christian
  • Steinkraus, Arne

Abstract

We study whether the spatial distribution of natural resources across different ethnic groups within countries causes spatial inequality and the incidence of armed conflict. By providing a theoretical rent-seeking model and analysing a set of geo-coded data for mines, night-time light emissions, local populations and ethnic homelands, we show that the spatial distribution of resources is a major driving factor of ethnic income inequality. Moreover, a spatially unequal distribution of natural resources induces rent-seeking behaviour and thus increases the risk of civil conflicts. Consequently, we extend the perspective of the resource curse to explain cross-country differences in income inequality and the onset of civil conflicts.

Suggested Citation

  • Lessmann, Christian & Steinkraus, Arne, 2019. "The geography of natural resources, ethnic inequality and civil conflicts," European Journal of Political Economy, Elsevier, vol. 59(C), pages 33-51.
    • Handle: RePEc:eee:poleco:v:59:y:2019:i:c:p:33-51
    DOI: 10.1016/j.ejpoleco.2019.01.005
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    More about this item

    Keywords

    Natural resources; Minerals; Mines; Night lights; Luminosity; Ethnic income inequality; Spatial inequality; Civil war; Conflict;
    All these keywords.

    JEL classification:

    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances; Revolutions
    • Q32 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Exhaustible Resources and Economic Development
    • Q34 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Natural Resources and Domestic and International Conflicts

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