Abstract
This paper examines the moderating role of institutions in explaining the effects of population density, income, and high-valued natural resources (oil) on violent conflict events. Panel-Corrected Standard Errors and Poisson Pseudo Maximum Likelihood estimators were applied. Results show that population density beyond 2293 persons per square kilometre increases violent conflict events. Further, institutional quality has a moderating effect on violent conflict events – stronger corruption control reduces the positive effect of significant oil production on violent conflict events and weakens the negative effect of per capita income on such events. The results suggest that reducing violent conflict events requires at least three things; (1) keeping population density below 2293 persons per square kilometre, (2) investing in institutional quality improvements, and (3) raising incomes.
Summary data on variables.
Variable | Observation | Mean | Standard deviation | Min | Max |
---|---|---|---|---|---|
Annual events | 1509 | 93.665 | 662.228 | 0 | 13,223 |
Population density | 1509 | 128.520 | 219.679 | 2.103 | 2017.274 |
GDP per capita | 1509 | 5665.107 | 9002.309 | 187.517 | 63,251.52 |
Oil | 1509 | 0.402 | 0.490 | 0 | 1 |
Oil price | 1509 | 76.269 | 32.159 | 20.190 | 128.010 |
Regulatory quality | 1509 | 36.284 | 21.351 | 0 | 90.430 |
Corruption control | 1509 | 33.975 | 22.050 | 0 | 87.204 |
Rule of law | 1509 | 34.490 | 21.334 | 0.469 | 87.5 |
Corruption control – Vdem | 1504 | 65.600 | 21.8 | 11.3 | 96.6 |
Pesaran (2004) test for cross-sectional dependence null: no cross-sectional dependence exists.
Tests | Statistic | p-Value |
---|---|---|
Annual events | 13.394 | 0.000 |
Pesaran (2007) panel unit root test null: series is I(1).
Variables | Levels | First difference | ||||||
---|---|---|---|---|---|---|---|---|
Without trend | With trend | Without trend | With trend | |||||
Statistic | p-Value | Statistic | p-Value | Statistic | p-Value | Statistic | p-Value | |
Annual events | 9.857 | 1.000 | 9.747 | 1.000 | −14.091 | 0.000 | −11.250 | 0.000 |
GDP per capita | 9.627 | 1.000 | 11.324 | 1.000 | −8.823 | 0.000 | −7.995 | 0.000 |
Population density | 16.486 | 1.000 | 15.925 | 1.000 | −0.099 | 0.461 | 7.887 | 0.000 |
Regulatory quality | 2.581 | 0.995 | 1.812 | 0.965 | −23.542 | 0.000 | −20.557 | 0.000 |
Corruption control | 4.331 | 1.000 | 7.139 | 1.000 | −18.232 | 0.000 | −14.971 | 0.000 |
Rule of law | 3.263 | 0.999 | 4.732 | 1.000 | 356.681 | 0.000 | 301.311 | 0.000 |
Kao and Westerlund panel cointegration tests.
Kao test for cointegration | Westerlund cointegration test | Westerlund cointegration test | |
---|---|---|---|
Ho: no cointegration | Ho: no cointegration | Ho: no cointegration | |
Ha: all panels cointegrated | Ha: all panels cointegrated | Ha: some panels are cointegrated | |
Unadjusted modified Dickey–Fuller t | −1.7577 (0.0394) | ||
Unadjusted Dickey-Fuller t | 3.7194 (0.0001) | ||
Variance rank | −2.9865 (0.0014) | −1.8137 (0.0349) |
Results of PCSE and PPML Estimates for annual events of Violent Conflicts (Uses oil production and WGI measure of corruption).
Variables | PCSE | PPML | ||
---|---|---|---|---|
(1) | (2) | (1) | (2) | |
Annual events | Annual events | Annual events | Annual events | |
Population density | 0.452 | 0.210 | −0.0660*** | −0.0555*** |
(0.395) | (0.281) | (0.0126) | (0.0112) | |
Population density square | −0.00104*** | −0.00121*** | 1.53e−05*** | 1.21e−05*** |
(0.000101) | (0.000153) | (3.66e−06) | (3.96e−06) | |
Population density*GDP per capita | −8.92e−05*** | −8.26e−05*** | 5.29e−06*** | 5.83e−06*** |
(1.16e−05) | (1.83e−05) | (1.49e−06) | (1.47e−06) | |
Population density*oil | 5.157*** | 4.927*** | 0.0178** | 0.0186** |
(0.545) | (0.851) | (0.00879) | (0.00865) | |
Population density*reg. quality | −0.0146*** | 0.000183* | ||
(0.00462) | (0.000109) | |||
Population density*corrupt. | −0.00405 | 4.57e−05 | ||
control | (0.00285) | (6.19e−05) | ||
GDP per capita | −0.0361*** | −0.0368*** | −0.00102*** | −0.00103*** |
(0.00889) | (0.00695) | (0.000325) | (0.000269) | |
GDP per capita*oil | 0.0180*** | 0.0152*** | 0.000535 | 0.000717** |
(0.00692) | (0.00579) | (0.000353) | (0.000364) | |
GDP per capita*reg. quality | 0.000541*** | 1.17e−05* | ||
(9.07e−05) | (6.82e−06) | |||
GDP per capita*corrupt. control | 0.000637*** | 9.56e−06*** | ||
(0.000108) | (3.39e−06) | |||
Oil | 1729*** | 1475*** | 6.574*** | 6.460*** |
(367.5) | (378.0) | (1.338) | (0.967) | |
Oil*reg. quality | −18.67*** | 0.00715 | ||
(2.646) | (0.0479) | |||
Oil*corrupt. control | −18.88*** | −0.0910** | ||
(3.051) | (0.0383) | |||
Reg. quality | 4.550*** | −0.0341 | ||
(0.929) | (0.0452) | |||
Corrupt. control. | 1.190*** | −0.0224 | ||
(0.445) | (0.0268) | |||
Average_Events | 0.956*** | 0.966*** | −0.000578 | 0.00368 |
(0.0255) | (0.00663) | (0.00838) | (0.00461) | |
Average_GDP per capita | −0.0156 | −0.0180 | −0.000356 | 0.00434 |
(0.0248) | (0.0127) | (0.00900) | (0.00524) | |
Average_Reg. quality | −10.77* | −0.789 | ||
(5.594) | (2.196) | |||
Average_Corrupt. control. | 1.952 | 0.492 | ||
(4.254) | (1.651) | |||
Average_Population density | 1.038 | 1.619*** | 0.0889 | −0.0295 |
(0.730) | (0.376) | (0.247) | (0.121) | |
Constant | 286.9 | −50.93 | 22.20 | −35.29 |
(217.6) | (202.6) | (98.57) | (72.12) | |
Observations | 1509 | 1509 | 1460 | 1460 |
-
Standard errors in parentheses, ***p < 0.01, **p < 0.05, *p < 0.1. Year and Country fixed effects included.
Results of PCSE and PPML estimates for annual events of violent onflicts (uses oil price and VDEM measure of corruption).
Variables | PCSE | PPML | ||
---|---|---|---|---|
(1) | (2) | (1) | (2) | |
Annual events | Annual events | Annual events | Annual events | |
Population density | −1.376*** | −3.060*** | −0.0524*** | −0.0527*** |
(0.362) | (0.254) | (0.0110) | (0.0138) | |
Population density | 0.000480*** | 0.000334*** | 8.64e−06** | 9.07e−06* |
(6.34e−05) | (6.87e−05) | (3.97e−06) | (4.77e−06) | |
Population density*GDP per capita | −3.60e−05*** | 1.50e−05*** | 4.62e−06*** | 5.32e−06*** |
(8.17e−06) | (5.27e−06) | (1.41e−06) | (1.36e−06) | |
Population density*oil price | 0.00274*** | 0.00282*** | 3.01e−05*** | 3.57e−05*** |
(0.000676) | (0.000614) | (8.43e−06) | (9.15e−06) | |
Population density*reg. quality | −0.000454 | 0.000143* | ||
(0.00379) | (8.10e−05) | |||
Population density*corrupt. control – vdem | 1.865*** | −0.00132 | ||
(0.336) | (0.0108) | |||
GDP per capita | −0.0141*** | −0.00483*** | −0.000480* | −0.000485 |
(0.00530) | (0.00112) | (0.000286) | (0.000372) | |
GDP per capita*oil price | 1.45e−06 | −1.96e−05* | −1.68e−06* | −1.78e−06** |
(1.06e−05) | (1.05e−05) | (9.24e−07) | (8.71e−07) | |
GDP per capita*reg. quality | 0.000212*** | 8.30e−06 | ||
(6.68e−05) | (5.71e−06) | |||
GDP per capita*corrupt. control – vdem | 0.00651 | 0.000204 | ||
(0.00532) | (0.000465) | |||
Oil price | −1.502*** | 2.109** | −0.0191 | 0.0212 |
(0.447) | (1.011) | (0.0134) | (0.0189) | |
Oil price*reg. quality | 0.0294** | 0.000412 | ||
(0.0130) | (0.000264) | |||
Corrupt. control – vdem*oil price | −3.815*** | −0.0393** | ||
(1.532) | (0.0188) | |||
Reg. quality | −5.837*** | −0.0507* | ||
(1.494) | (0.0269) | |||
Corrupt. control – vdem | 292.0*** | 2.463 | ||
(106.9) | (3.284) | |||
Average_Reg. quality | 0.658 | −0.0203 | ||
(6.048) | (2.175) | |||
Average_Events | 0.979*** | 0.995*** | 0.00151 | 0.00200 |
(0.0254) | (0.00564) | (0.00797) | (0.00382) | |
Average_GDP per cap. | 0.0219 | 0.0374*** | 0.000437 | 0.00116 |
(0.0288) | (0.151) | (0.00866) | (0.00466) | |
Average_Population density | 0.891 | 0.499 | 0.0705 | 0.0591 |
(0.827) | (0.333) | (0.240) | (0.143) | |
Average_Corrupt. control – vdem | −446.3*** | 5.938 | ||
(100.0) | (38.93) | |||
Constant | 175.2 | 73.00 | −8.254 | −18.66 |
(243.3) | (117.3) | (96.45) | (31.06) | |
Observations | 1509 | 1504 | 1460 | 1455 |
-
Standard errors in parentheses, ***p < 0.01, **p < 0.05, *p < 0.1. Year and Country fixed effects included.
Results of PCSE and PPML estimates for annual events of violent conflicts (uses oil production, &WGI measure of corruption and rule of law).
Variables | PCSE | PPML | ||
---|---|---|---|---|
(1) | (2) | (3) | (4) | |
Annual events | Annual events | Annual events | Annual events | |
Population density | 0.00341 | 0.210 | −0.0555*** | −0.0555*** |
(0.315) | (0.281) | (0.0116) | (0.0112) | |
Population density square | −0.000722*** | −0.00121*** | 2.03e−05*** | 1.21e−05*** |
(0.000170) | (0.000153) | (5.68e−06) | (3.96e−06) | |
Population density*GDP per capita | −5.71e−05*** | −8.26e−05*** | 4.56e−06*** | 5.83e−06*** |
(1.45e−05) | (1.83e−05) | (1.60e−06) | (1.47e−06) | |
Population density*oil | 4.542*** | 4.927*** | 0.0217** | 0.0186** |
(0.822) | (0.851) | (0.00904) | (0.00865) | |
Population density*reg. quality | −0.0238*** | −0.000233** | ||
(0.00463) | (0.000110) | |||
Population density*corrupt. control | −0.00405 | 4.57e−05 | ||
(0.00285) | (6.19e−05) | |||
GDP per capita | −0.0380*** | −0.0368*** | −0.000528** | −0.00103*** |
(0.00893) | (0.00695) | (0.000230) | (0.000269) | |
GDP per capita*oil | 0.0291*** | 0.0152*** | 0.000429 | 0.000717** |
(0.00693) | (0.00579) | (0.000342) | (0.000364) | |
GDP per capita*reg. quality | 0.000412*** | 4.03e−08 | ||
(7.49e−05) | (4.26e−06) | |||
GDP per capita*corrupt. control | 0.000637*** | 9.56e−06*** | ||
(0.000108) | (3.39e−06) | |||
Oil | 1390*** | 1475*** | 5.968*** | 6.460*** |
(369.9) | (378.0) | (1.219) | (0.967) | |
Oil*reg. quality | −22.15*** | −0.0563 | ||
(2.275) | (0.0426) | |||
(366.4) | (372.1) | (1.137) | (1.024) | |
Oil*corrupt. control | −18.88*** | −0.0910** | ||
(3.051) | (0.0383) | |||
Reg. quality | 3.807*** | −0.0253 | ||
(0.817) | (0.0296) | |||
Corrupt. control | 1.190*** | −0.0224 | ||
(0.445) | (0.0268) | |||
Average_Events | 1.014*** | 0.966*** | 0.00717 | 0.00368 |
(0.0288) | (0.00663) | (0.0132) | (0.00461) | |
Average_GDP per capita | 0.0495* | −0.0180 | 0.00728 | 0.00434 |
(0.0287) | (0.0127) | (0.0126) | (0.00524) | |
Average_Reg. quality | 0.202 | 0.707 | ||
(4.872) | (1.776) | |||
Average_Corrupt. control | 1.952 | 0.492 | ||
(4.254) | (1.651) | |||
Average_Population density | 0.218 | 1.619*** | −0.139 | −0.0295 |
(0.827) | (0.376) | (0.391) | (0.121) | |
Constant | −119.4 | −50.93 | −45.55 | −35.29 |
(253.8) | (202.6) | (83.50) | (72.12) | |
Observations | 1509 | 1509 | 1460 | 1460 |
-
Standard errors in parentheses, ***p < 0.01, **p < 0.05, *p < 0.1. Year and Country fixed effects included.
Results of negative binomial regression for annual events of violent conflicts.
Variables | (1) | (2) |
---|---|---|
Annual events | Annual events | |
Population density | −0.00231** | −0.00405*** |
(0.000997) | (0.000952) | |
Population density square | 2.17e−06*** | 2.59e−06*** |
(6.96e−07) | (7.47e−07) | |
Population density*GDP per capita | 2.43e−07*** | 1.61e−07** |
(8.02e−08) | (7.90e−08) | |
Population density*oil | −0.00266** | −0.00369*** |
(0.00128) | (0.00117) | |
Population density *reg. quality | −5.39e−05** | |
(2.52e−05) | ||
Population density*corrupt. control | 4.24e−06 | |
(1.81e−05) | ||
GDP per capita | −7.31e−05 | −7.08e−05 |
(5.54e−05) | (5.55e−05) | |
GDP per capita*oil | −9.06e−05** | −0.000102** |
(4.28e−05) | (4.43e−05) | |
GDP per capita*Reg. quality | −8.40e−07 | |
(7.70e−07) | ||
GDP per capita* corrupt. control | −9.24e−07 | |
(7.44e−07) | ||
Oil | −0.237 | −0.163 |
(0.198) | (0.200) | |
Oil*Reg. quality | 0.00668 | |
(0.00667) | ||
Oil*Corrupt. control | 0.00990 | |
(0.00683) | ||
Reg. Quality | 0.00921** | |
(0.00436) | ||
Corrupt. control | 0.00960** | |
(0.00416) | ||
Average_Events | 0.00166*** | 0.00135*** |
(0.000398) | (0.000380) | |
Average_GDP per capita | −0.000300 | −0.000352 |
(0.000284) | (0.000269) | |
Average_Reg. quality | 0.0577 | |
(0.0626) | ||
Average_Corrupt. control | 0.0561 | |
(0.0789) | ||
Average_Population density | 0.0262*** | 0.0324*** |
(0.00886) | (0.00700) | |
Constant | −4.826** | −5.225 |
(2.420) | (3.425) | |
Observations | 1460 | 1460 |
-
Standard errors in parentheses. ***p < 0.01, **p < 0.05, *p < 0.1. Year and country fixed effects excluded. Regression with Year and country fixed effects is non-convergent.
1 | Afghanistan | 41 | Lebanon |
2 | Albania | 42 | Lesotho |
3 | Algeria | 43 | Liberia |
4 | Angola | 44 | Libya |
5 | Bahrain | 45 | Madagascar |
6 | Bangladesh | 46 | Malawi |
7 | Benin | 47 | Malaysia |
8 | Bosnia and Herzegovina | 48 | Mali |
9 | Botswana | 49 | Mauritania |
10 | Burkina Faso | 50 | Montenegro |
11 | Burundi | 51 | Morocco |
12 | Cambodia | 52 | Mozambique |
13 | Cameroon | 53 | Myanmar |
14 | Central African Republic | 54 | Namibia |
15 | Chad | 55 | Nepal |
16 | Croatia | 56 | Niger |
17 | Cyprus | 57 | Nigeria |
18 | Democratic rep of Congo | 58 | North Macedonia |
19 | Egypt | 59 | Pakistan |
20 | Equatorial Guinea | 60 | Philippines |
21 | Eritrea | 61 | Republic of Congo |
22 | Ethiopia | 62 | Russia |
23 | Eswatini | 63 | Rwanda |
24 | Gabon | 64 | Saudi Arabia |
25 | Gambia | 65 | Senegal |
26 | Ghana | 66 | Serbia |
27 | Greece | 67 | Sierra Leone |
28 | Guinea | 68 | South Africa |
29 | Guinea-Bissau | 69 | Sri Lanka |
30 | India | 70 | Tanzania |
31 | Indonesia | 71 | Thailand |
32 | Iran | 72 | Togo |
33 | Iraq | 73 | Tunisia |
34 | Israel | 74 | Turkey |
35 | Ivory Coast | 75 | Uganda |
36 | Jordan | 76 | Ukraine |
37 | Kenya | 77 | United Arab Emirates |
38 | Kosovo | 78 | Vietnam |
39 | Kuwait | 79 | Yemen |
40 | Laos | 80 | Zambia |
81 | Zimbabwe |
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Articles in the same Issue
- Frontmatter
- Research Articles
- Do Remittances and Terrorism Impact Each Other?
- Burden Sharing During MINUSMA, Fair Enough? A Preliminary Descriptive Account
- Population, Institutions, and Violent Conflicts – How Important is Population Pressure in Violent Resource-Based Conflicts?
- Letters and Proceedings
- Does Geopolitical Risk Influence China’s Defence Sector Returns?
Articles in the same Issue
- Frontmatter
- Research Articles
- Do Remittances and Terrorism Impact Each Other?
- Burden Sharing During MINUSMA, Fair Enough? A Preliminary Descriptive Account
- Population, Institutions, and Violent Conflicts – How Important is Population Pressure in Violent Resource-Based Conflicts?
- Letters and Proceedings
- Does Geopolitical Risk Influence China’s Defence Sector Returns?