The geography of natural resources,ethnic inequality and civil conflicts |
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| Affiliation: | 1. University of Groningen, Faculty of Economics and Business, Department of Global Economics and Management, Nettelbosje 2, 9747 AE Groningen, the Netherlands;2. CESifo, Germany;3. Osnabrueck University, Institute of Empirical Economic Research, Rolandstr. 8, 49069 Osnabrueck, Germany;1. Baugh Center for Entrepreneurship & Free Enterprise, Baylor University, USA;2. Department of Economics, Clemson University, USA;1. University of Strasbourg, CNRS, BETA, France;2. TIMAS, Thang Long University, Viet Nam;3. FERDI, Clermont Ferrand, France;1. Department of Economics, Appalachian State University, Boone, NC 28608, USA;2. Department of Economics, West Virginia University, Morgantown, WV 26501, USA;1. Universidad Del Pacífico, Peru;2. Department of Business Administration, Pontificia Universidad Javeriana, Colombia |
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| Abstract: | We study whether the spatial distribution of natural resources across different ethnic groups within countries causes spatial inequality and the incidence of armed conflict. By providing a theoretical rent-seeking model and analysing a set of geo-coded data for mines, night-time light emissions, local populations and ethnic homelands, we show that the spatial distribution of resources is a major driving factor of ethnic income inequality. Moreover, a spatially unequal distribution of natural resources induces rent-seeking behaviour and thus increases the risk of civil conflicts. Consequently, we extend the perspective of the resource curse to explain cross-country differences in income inequality and the onset of civil conflicts. |
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| Keywords: | Natural resources Minerals Mines Night lights Luminosity Ethnic income inequality Spatial inequality Civil war Conflict D72, D74, Q32, Q34 |
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