• Media type: E-Book; Report
  • Title: Oil and Civil Conflict: On and Off (Shore)
  • Contributor: Andersen, Jørgen Juel [Author]; Nordvik, Frode Martin [Author]; Tesei, Andrea [Author]
  • Published: Munich: Center for Economic Studies and ifo Institute (CESifo), 2017
  • Language: English
  • Keywords: Q35 ; D74 ; O13 ; Q34 ; conflict ; natural resources
  • Origination:
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  • Description: We reconsider the relationship between oil and conflict, focusing on the location of oil resources. In a panel of 132 countries over the period 1962-2009, we show that oil windfalls increase the probability of conflict in onshore-rich countries, while they decrease this probability in offshore-rich countries. We use a simple model of conflict to illustrate how these opposite effects can be explained by a fighting capacity mechanism, whereby the government can use offshore oil income to increase its fighting capacity, while onshore oil may be looted by oppositional groups to finance a rebellion. We provide empirical evidence supporting this interpretation: we find that oil windfalls increase both the number and strength of active rebel groups in onshore-rich countries, while they strengthen the government in offshore-rich ones.
  • Access State: Open Access