Arbeitspapier
Stimulant or Depressant? Resource-Related Income Shocks and Conflict
We provide evidence about the mechanisms linking resource-related income shocks to conflict. Combining temporal variation in international drug prices with spatial variation in the suitability to produce opium, we show that higher drug prices reduce conflict over the 2002-2014 period in Afghanistan. There are two main mechanisms. First, household living standards and thus the opportunity costs of fighting increase. Second, we hypothesize that the opportunity cost effects dominate contest effects if the degree of group competition over valuable resources is sufficiently small. Regressions using georeferenced data on drug production, ethnic homelands, and Taliban versus pro-government influence support this hypothesis.
- Sprache
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Englisch
- Erschienen in
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Series: CESifo Working Paper ; No. 7887
- Klassifikation
-
Wirtschaft
Conflict; Conflict Resolution; Alliances; Revolutions
Legal Procedure, the Legal System, and Illegal Behavior: General
Economywide Country Studies: Asia including Middle East
Agriculture: General
- Thema
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resources
resource curse
conflict
drugs
illicit economy
illegality
geography of conflict
Afghanistan
Taliban
- Ereignis
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Geistige Schöpfung
- (wer)
-
Gehring, Kai
Langlotz, Sarah
Kienberger, Stefan
- Ereignis
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Veröffentlichung
- (wer)
-
Center for Economic Studies and ifo Institute (CESifo)
- (wo)
-
Munich
- (wann)
-
2019
- Handle
- Letzte Aktualisierung
-
10.03.2025, 11:44 MEZ
Datenpartner
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Objekttyp
- Arbeitspapier
Beteiligte
- Gehring, Kai
- Langlotz, Sarah
- Kienberger, Stefan
- Center for Economic Studies and ifo Institute (CESifo)
Entstanden
- 2019