DP9440 The Geography of Inter-State Resource Wars
|Author(s):||Francesco Caselli, Massimo Morelli, Dominic Rohner|
|Publication Date:||April 2013|
|Keyword(s):||natural resources, oil, war|
|Programme Areas:||International Macroeconomics, Development Economics|
|Link to this Page:||cepr.org/active/publications/discussion_papers/dp.php?dpno=9440|
We establish a theoretical as well as empirical framework to assess the role of resource endowments and their geographic location for inter-State conflict. The main predictions of the theory are that conflict tends to be more likely when at least one country has natural resources; when the resources in the resource-endowed country are closer to the border; and, in the case where both countries have natural resources, when the resources are located asymmetrically vis-a-vis the border. We test these predictions on a novel dataset featuring oilfield distances from bilateral borders. The empirical analysis shows that the presence and location of oil are significant and quantitatively important predictors of inter-State conflicts after WW2.