DP8620 Do Giant Oilfield Discoveries Fuel Internal Armed Conflicts?
|Author(s):||Yu-Hsiang Lei, Guy Michaels|
|Publication Date:||October 2011|
|Keyword(s):||Armed Conflict, Civil War, Natural Resources, Petroleum, Resource Curse|
|JEL(s):||O13, Q33, Q34|
|Programme Areas:||Development Economics|
|Link to this Page:||cepr.org/active/publications/discussion_papers/dp.php?dpno=8620|
We use new data to examine the effects of giant oilfield discoveries around the world since 1946. On average, these discoveries increase per capita oil production and oil exports by up to 50 percent. But these giant oilfield discoveries also have a dark side: they increase the incidence of internal armed conflict by about 5-8 percentage points. This increased incidence of conflict due to giant oilfield discoveries is especially high for countries that had already experienced armed conflicts or coups in the decade prior to discovery.