NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH
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James E. Fenske

Oxford University

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Institutional Affiliation: University of Oxford

NBER Working Papers and Publications

February 2018Resources, Conflict, and Economic Development in Africa
with Achyuta Adhvaryu, Gaurav Khanna, Anant Nyshadham: w24309
Natural resources have driven both growth and conflict in modern Africa. We model the interaction of parties engaged in potential conflict over such resources. The likelihood of conflict depends on both the absolute and relative resource endowments of the parties. Resources fuel conflict by raising the gains from expropriation and by increasing fighting strength. Economic prosperity, as a result, is a function of equilibrium conflict prevalence determined not just by a region's own resources but also by the resources of its neighbors. Using high-resolution spatial data on resources, conflicts, and nighttime illumination across the whole of sub-Saharan Africa, we find evidence confirming each of the model's predictions. Structural estimates of the model reveal that conflict equilibria are ...
 
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