International Journal of
Peace and Development Studies

  • Abbreviation: Int. J. Peace and Dev. Stud
  • Language: English
  • ISSN: 2141-6621
  • DOI: 10.5897/IJPDS
  • Start Year: 2010
  • Published Articles: 79

Full Length Research Paper

Natural resources and civil conflicts: Policy analysis under general equilibrium

Md. Didarul Hasan
  • Md. Didarul Hasan
  • Department of Economics, Asian University for Women, Chittagong, Bangladesh
  • Google Scholar
Sajal Lahiri
  • Sajal Lahiri
  • Department of Economics, Southern Illinois University Carbondale, Carbondale, IL 62901, U.S.A.
  • Google Scholar


  •  Received: 21 August 2017
  •  Accepted: 10 November 2017
  •  Published: 31 December 2017

Abstract

In this paper, a two-period general equilibrium model on the relationship between natural resources and civil conflict has been developed. Unlike existing literature, both resource extraction and wage rate are considered as endogenous during the conflict. The main purpose of the paper is to examine policy options for international community to limit the conflict intensity. It has been found out that a current international sanction will reduce civil conflict if the wage rate is fixed. However, when the wage rate is endogenous, the effect of current sanction is uncertain. Productivity improvement in agricultural sector may also subside the conflict. The study results also suggest that a bilateral piece-meal reduction in war efforts is the most effective policy for conflict reduction.
 
Key words: Natural resources, civil conflicts, general equilibrium, sanctions.