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
Englisch

Erschienen in
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
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)
Center for Economic Studies and ifo Institute (CESifo)
(wo)
Munich
(wann)
2019

Handle
Letzte Aktualisierung
10.03.2025, 11:44 MEZ

Datenpartner

Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.

Objekttyp

  • Arbeitspapier

Beteiligte

  • Gehring, Kai
  • Langlotz, Sarah
  • Kienberger, Stefan
  • Center for Economic Studies and ifo Institute (CESifo)

Entstanden

  • 2019

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