Arbeitspapier

Stimulant or depressant? Resource-related income shocks and conflict

We provide evidence on the mechanisms linking resource-related income shocks to conflict, focusing specifically on illegal crops. We hypothesize that the degree of group competition over resources and the extent of law enforcement explain whether opportunity cost or contest effects dominate. Combining temporal variation in international drug prices with spatial variation in the suitability to produce opium, we show that in Afghanistan higher prices increase household living standards, and reduce conflict. Using georeferenced data on the drug production network and Taliban versus pro-government control highlights the importance of opportunity cost effects, and reveals heterogeneous effects in line with our theory.

Sprache
Englisch

Erschienen in
Series: Discussion Papers ; No. 269

Klassifikation
Wirtschaft
Conflict; Conflict Resolution; Alliances; Revolutions
Illegal Behavior and the Enforcement of Law
Economic Development: Agriculture; Natural Resources; Energy; Environment; Other Primary Products
Economywide Country Studies: Asia including Middle East
Thema
resources
resource curse
conflict
drugs
illicit economy
illegality
geography of conflict
Afghanistan
Taliban

Ereignis
Geistige Schöpfung
(wer)
Gehring, Kai
Langlotz, Sarah
Kienberger, Stefan
Ereignis
Veröffentlichung
(wer)
Georg-August-Universität Göttingen, Courant Research Centre - Poverty, Equity and Growth (CRC-PEG)
(wo)
Göttingen
(wann)
2020

Handle
Letzte Aktualisierung
10.03.2025, 11:42 MEZ

Datenpartner

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Objekttyp

  • Arbeitspapier

Beteiligte

  • Gehring, Kai
  • Langlotz, Sarah
  • Kienberger, Stefan
  • Georg-August-Universität Göttingen, Courant Research Centre - Poverty, Equity and Growth (CRC-PEG)

Entstanden

  • 2020

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