Resources, conflict, and economic development in Africa

Evidence suggests that natural resources have driven conflict and underdevelopment in modern Africa. We show that this relationship exists primarily when neighboring regions are resource-rich. When neighbors are resource-poor, own resources instead drive economic growth. To motivate the empirical st...

Full description

Bibliographic Details
Main Authors: Adhvaryu, A, Fenske, J, Khanna, G, Nyshadham, A
Format: Journal article
Language:English
Published: Elsevier 2020
_version_ 1824458588752445440
author Adhvaryu, A
Fenske, J
Khanna, G
Nyshadham, A
author_facet Adhvaryu, A
Fenske, J
Khanna, G
Nyshadham, A
author_sort Adhvaryu, A
collection OXFORD
description Evidence suggests that natural resources have driven conflict and underdevelopment in modern Africa. We show that this relationship exists primarily when neighboring regions are resource-rich. When neighbors are resource-poor, own resources instead drive economic growth. To motivate the empirical study of this set of facts, we present a simple model of parties engaged in potential conflict over resources, revealing that economic prosperity is a function of equilibrium conflict prevalence, determined not just by a region's own resources but also by the resources of its neighbors. Structural estimates confirm the model's predictions, and reveal that conflict equilibria are more prevalent where institutional quality is worse.
first_indexed 2025-02-19T04:28:17Z
format Journal article
id oxford-uuid:62f52de5-674c-4564-8fca-e55df14623b9
institution University of Oxford
language English
last_indexed 2025-02-19T04:28:17Z
publishDate 2020
publisher Elsevier
record_format dspace
spelling oxford-uuid:62f52de5-674c-4564-8fca-e55df14623b92024-12-12T16:16:20ZResources, conflict, and economic development in AfricaJournal articlehttp://purl.org/coar/resource_type/c_dcae04bcuuid:62f52de5-674c-4564-8fca-e55df14623b9EnglishSymplectic ElementsElsevier2020Adhvaryu, AFenske, JKhanna, GNyshadham, AEvidence suggests that natural resources have driven conflict and underdevelopment in modern Africa. We show that this relationship exists primarily when neighboring regions are resource-rich. When neighbors are resource-poor, own resources instead drive economic growth. To motivate the empirical study of this set of facts, we present a simple model of parties engaged in potential conflict over resources, revealing that economic prosperity is a function of equilibrium conflict prevalence, determined not just by a region's own resources but also by the resources of its neighbors. Structural estimates confirm the model's predictions, and reveal that conflict equilibria are more prevalent where institutional quality is worse.
spellingShingle Adhvaryu, A
Fenske, J
Khanna, G
Nyshadham, A
Resources, conflict, and economic development in Africa
title Resources, conflict, and economic development in Africa
title_full Resources, conflict, and economic development in Africa
title_fullStr Resources, conflict, and economic development in Africa
title_full_unstemmed Resources, conflict, and economic development in Africa
title_short Resources, conflict, and economic development in Africa
title_sort resources conflict and economic development in africa
work_keys_str_mv AT adhvaryua resourcesconflictandeconomicdevelopmentinafrica
AT fenskej resourcesconflictandeconomicdevelopmentinafrica
AT khannag resourcesconflictandeconomicdevelopmentinafrica
AT nyshadhama resourcesconflictandeconomicdevelopmentinafrica