Abstract
The large empirical conflict literature has established that there is a strong negative link between economic variables and the onset of an armed civil conflict. However, it has been difficult to demonstrate a clear causality between poor economic performance and increased risk of conflict because of potential endogeneity issues, especially for large country samples. Most existing studies that analyse the causal links focus on the effects of economic growth on conflict, even though conventional conflict studies find the strongest relationship for income levels. In this article, we use three new exogenous instruments for income per capita, based on historical data for mailing times, telegram charges and urbanization rates. Using instrumental variables methods and global panel data for the period 1946–2014, we show that the negative effect of income per capita on the probability of conflict onset is consistently strong and larger than in conventional estimations using pooled ordinary least square regressions.
References
Angrist, J. & Pischke, J.-S. (2009). Mostly harmless econometrics: An empiricist’s companion. Princeton, NJ: Princeton University Press.10.1515/9781400829828Search in Google Scholar
Bairoch, P. (1988). Cities and economic development: From the dawn of history to the present. Chicago, IL: University of Chicago Press.Search in Google Scholar
Bazzi, S. & Blattman, C. (2014). Economic shocks and conflict: Evidence from commodity prices. American Economic Journal: Macroeconomics, 6, 1–38.10.1257/mac.6.4.1Search in Google Scholar
Beck, N. & Katz, J. N. (2001). Throwing out the baby with the bath water: A comment on Green, Kim, and Yoon. International Organization, 55(2), 487–495.10.1162/00208180151140658Search in Google Scholar
Bergholt, D. & Lujala, P. (2012). Climate-related natural disasters, economic growth, and armed civil conflict. Journal of Peace Research, 49(1), 147–162.10.1177/0022343311426167Search in Google Scholar
Berman, N., Couttenier, M., Rohner, D. & Thoenig, M. (2017). This mine is mine! How minerals fuel conflicts in Africa. American Economic Review, 107(6), 1564–1610.10.1257/aer.20150774Search in Google Scholar
Bohlken, A. & Sergenti, T. (2010). Economic growth and ethnic violence: An empirical investigation of Hindu–Muslim riots in India. Journal of Peace Research, 47(5), 589–600.10.1177/0022343310373032Search in Google Scholar
Bolt, J. & van Zanden, L. (2013). The first update of the Maddison Project; re-estimating growth before 1820. Accessed September 19, 2013 Maddison Project Working Paper 4. Available at http://www.ggdc.net/maddison/maddison-project/publications/wp4.pdf.Search in Google Scholar
Brückner, M. & Ciccone, A. (2010). International commodity prices, growth and the outbreak of civil war in sub-saharan Africa. Economic Journal, 120, 519–534.10.1111/j.1468-0297.2010.02353.xSearch in Google Scholar
Brunnschweiler, C. N. & Lujala, P. (2015). Economic backwardness and social tension UEA Applied and Financial Economics Working Papers Series n.72.Search in Google Scholar
Collier, P. & Hoeffler, A. (2002). On the incidence of civil war in Africa. Journal of Conflict Resolution, 46, 13–28.10.1177/0022002702046001002Search in Google Scholar
Collier, P. & Hoeffler, A. (2004). Greed and grievance in civil war. Oxford Economic Papers, 56, 563–595.10.1093/oep/gpf064Search in Google Scholar
Cotet, A. M. & Tsui, K. (2013). Oil and conflict: What does the cross country evidence really show? American Economic Journal: Macroeconomics, 5(1), 49–80.10.1257/mac.5.1.49Search in Google Scholar
Couttenier, M. & Soubeyran, R. (2015). A survey of the causes of civil conflicts: Natural factors and economic conditions. Revue d’Economie Politique, 125(6), 787–810.10.3917/redp.256.0787Search in Google Scholar
Djankov, S. & Reynal-Querol, M. (2010). Poverty and civil war: Revisiting the evidence. The Review of Economics and Statistics, 92(4), 1035–1041.10.1162/REST_a_00046Search in Google Scholar
Downey, G. J. (2002). Telegraph Messenger boys: Labor, communication and technology, 1850–1950. London: Routledge.Search in Google Scholar
Esteban, J., Mayoral, L. & Ray, D. (2012). Ethnicity and conflict: An empirical study. American Economic Review, 102(4), 1310–1342.10.1257/aer.102.4.1310Search in Google Scholar
Fearon, J. D. & Laitin, D. D. (2003). Ethnicity, insurgency, and civil war. American Political Science Review, 97(1), 75–90.10.1017/S0003055403000534Search in Google Scholar
Feenstra, R. C., Inklaar, R. & Timmer, M. P. (2013). The next generation of the Penn World Table. Available for download at www.ggdc.net/pwt.10.3386/w19255Search in Google Scholar
Gleditsch, N. P., Wallensteen, P., Eriksson, M., Sollenberg, M. & Strand, H. (2002). Armed conflict 1946–2001: A new dataset. Journal of Peace Research, 39(5), 615–637.10.1177/0022343302039005007Search in Google Scholar
Hegre, H. & Sambanis, N. (2006). Sensitivity analysis of the empirical literature on civil war onset. Journal of Conflict Resolution, 50(4), 508–535.10.1177/0022002706289303Search in Google Scholar
Hodler, R. & Raschky, P. A. (2014). Economic shocks and civil conflict at the regional level. Economics Letters, 124, 530–533.10.1016/j.econlet.2014.07.027Search in Google Scholar
Marshall, M. G., Gurr, T. R. & Jaggers, K. (2013). Polity IV project: Dataset users’ manual. Center for Systemic Peace. Accessed September 19, 2013 http://www.systemicpeace.org/inscrdata.html.Search in Google Scholar
McEvedy, C. & Jones, R. (1978). Atlas of world population history. London: Allen Lane.Search in Google Scholar
Miguel, E., Satyanath, S. & Sergenti, E. (2004). Economic shocks and civil conflict: An instrumental variables approach. Journal of Political Economy, 112(4), 725–753.10.1086/421174Search in Google Scholar
Montalvo, J. G. & Reynal-Querol, M. (2005). Ethnic polarization, potential conflict, and civil wars. American Economic Review, 95(3), 796–816.10.1257/0002828054201468Search in Google Scholar
Pettersson, T. & Wallensteen, P. (2015). Armed conflict, 1946–2014. Journal of Peace Research, 52(4), 536–550.10.1177/0022343315595927Search in Google Scholar
Post Office. (1903). Post Office Guide n.187. London: Post Office (Guidance & Services).Search in Google Scholar
Post Office Department. (1903). United States Official Postal Guide, January 1903. Philadelphia: United States of America Post Office Department.Search in Google Scholar
Ross, N. E. (1928). How to write telegrams properly, Little Blue Book n. 459. Girard (USA): Haldeman-Julius Publications.Search in Google Scholar
Sarsons, H. (2015). Rainfall and conflict: A cautionary tale. Journal of Development Economics, 115, 62–72.10.1016/j.jdeveco.2014.12.007Search in Google Scholar
Statesman’s Yearbook. (1922). Statistical and historical annual of the states of the world for the year 1922. London: Macmillan.Search in Google Scholar
UN. (1969). Growth of the world’s urban and rural population, 1920–2000. Department of Economic and Social Affairs, Population Studies n.44. New York, NY: United Nations.Search in Google Scholar
©2017 Walter de Gruyter GmbH, Berlin/Boston
Articles in the same Issue
- Introduction to the Proceedings of the 17th Jan Tinbergen European Peace Science Conference
- On the Proper Use of Game-Theoretic Models in Conflict Studies
- Ornithology and Varieties of Conflict: A Personal Retrospective on Conflict Forecasting
- Conflict Fragmentation Index
- Income and Armed Civil Conflict: An Instrumental Variables Approach
- Land-Use Change and Communal Conflicts in Sub-Saharan Africa
- Bridging Economics and International Relations to Understand State Capacity and War in Sub-Saharan Africa
- Political Regimes and Government’s Reaction to Terrorism. A Simple Model
- A Perfect Match? Are Dogmatic Belief Systems Simply a Reconciliation of Cognitive and Emotional Human Needs?
- Urban Protests, Coups d’état and Post-Coup Regime Change
- Nonviolent Resistance and Peaceful Turnover of Power
- Political Cycles in Military Deployment
- Buying Friends? The Importance of Economic Flows in Assembling the Iraq War Coalition
Articles in the same Issue
- Introduction to the Proceedings of the 17th Jan Tinbergen European Peace Science Conference
- On the Proper Use of Game-Theoretic Models in Conflict Studies
- Ornithology and Varieties of Conflict: A Personal Retrospective on Conflict Forecasting
- Conflict Fragmentation Index
- Income and Armed Civil Conflict: An Instrumental Variables Approach
- Land-Use Change and Communal Conflicts in Sub-Saharan Africa
- Bridging Economics and International Relations to Understand State Capacity and War in Sub-Saharan Africa
- Political Regimes and Government’s Reaction to Terrorism. A Simple Model
- A Perfect Match? Are Dogmatic Belief Systems Simply a Reconciliation of Cognitive and Emotional Human Needs?
- Urban Protests, Coups d’état and Post-Coup Regime Change
- Nonviolent Resistance and Peaceful Turnover of Power
- Political Cycles in Military Deployment
- Buying Friends? The Importance of Economic Flows in Assembling the Iraq War Coalition