Trade and Civil Conflict : Revisiting the Cross-Country Evidence
This paper revisits and expands the evidence on the impact of trade shocks on intra-state conflict with a large sample of developing countries in the 1960-2010 period. The results suggest that increases in the prices of a country's exported commodities raise the country's risk of civil con...
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Zusammenfassung: | This paper revisits and expands the
evidence on the impact of trade shocks on intra-state
conflict with a large sample of developing countries in the
1960-2010 period. The results suggest that increases in the
prices of a country's exported commodities raise the
country's risk of civil conflict and its duration. The
effect on conflict risk is mainly driven by the price of
point-source commodities, in line with the rapacity effect
theory of conflict. However, the paper does not find support
for the opportunity cost theory via exported commodities.
The analysis also finds that intense trading with contiguous
countries is associated with lower duration of intra-state
conflict, consistent with the idea that such trade reduces
the incentive of contiguous countries to fuel conflict in
their neighbor. Trading with neighbors is also associated
with a lower risk of conflict, when such trade occurs under
trade agreements. By contrast, neither imported commodity
prices nor the economic cycle in export markets appears to
exert any influence on the probability or duration of
conflict. The paper identifies several conditions under
which changes in the value of exported commodities cease to
matter for conflict probability. |
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