eprintid: 25124
rev_number: 13
eprint_status: archive
userid: 3114
dir: disk0/00/02/51/24
datestamp: 2018-07-20 05:58:48
lastmod: 2018-12-05 16:41:37
status_changed: 2018-07-20 05:58:48
type: workingPaper
metadata_visibility: show
creators_name: Gehring, Kai
creators_name: Langlotz, Sarah
creators_name: Kienberger, Stefan
title: Stimulant or depressant? Resource-related income shocks and conflict
subjects: ddc-330
divisions: i-181000
abstract: We provide new evidence about the mechanisms linking resource-related income shocks to conflict. To do so, we combine temporal variation in international drug prices with new data on spatial variation in opium suitability to examine the effect of opium profitability on conflict in Afghanistan. District level results indicate a conflict-reducing effect over the 2002-2014 period, both in a reduced-form setting and with three different instrumental variables. We provide evidence for two main mechanisms. First, the importance of contest effects depends on the degree of violent group competition over valuable resources. By using data on the drug production process, ethnic homelands, and Taliban versus pro-government influence, we show that on average group competition for suitable districts is relatively low in Afghanistan. Second, we highlight the role of opportunity costs by showing that opium profitability positively affects household living standards, and becomes more important after a sudden rise in unemployment due to the dissolution of large armed militias after an exogenous policy change.
date: 2018-07-19
id_scheme: DOI
id_number: 10.11588/heidok.00025124
schriftenreihe_cluster_id: sr-3
schriftenreihe_order: 0652
ppn_swb: 1029278725
own_urn: urn:nbn:de:bsz:16-heidok-251243
language: eng
bibsort: GEHRINGKAISTIMULANTO20180719
full_text_status: public
series: Discussion Paper Series, University of Heidelberg, Department of Economics
volume: 0652
place_of_pub: Heidelberg
citation:   Gehring, Kai ; Langlotz, Sarah ; Kienberger, Stefan  (2018) Stimulant or depressant? Resource-related income shocks and conflict.  [Working paper]     
document_url: https://archiv.ub.uni-heidelberg.de/volltextserver/25124/1/Gehring%2C%20Langlotz%2C%20and%20Kienberger_2018_dp0652.pdf