Abstract

https://ssrn.com/abstract=2917209
 


 



The Geography of Natural Resources, Ethnic Inequality and Development


Christian Lessmann


Technology University of Braunschweig; Ifo Branch Dresden; CESifo (Center for Economic Studies and Ifo Institute) - Ifo Institute

Arne Steinkraus


Institute of Economics

January 24, 2017

CESifo Working Paper Series No. 6299

Abstract:     
We study whether the spatial distribution of natural resources across different ethnic groups within countries impede spatial inequality, national economic performance, and the incidence of armed conflict. By providing a theoretical rent-seeking model and analysing a set of geocoded data for mines, night-time light emissions, local populations and ethnic homelands, we show that the distribution of resources is a major driving factor of ethnic income inequality and, thus, induces rent-seeking behaviour. Consequently, we extend the perspective of the resource curse to explain cross-country differences in economic performance and the onset of civil conflicts. We show that the inequality in the spatial distribution of resource endowments within countries drives the curse of natural resources, not the resources per se.

Number of Pages in PDF File: 56

Keywords: natural resources, minerals, mines, night lights, luminosity, ethnic income inequality, spatial inequality, development, civil war, conflict

JEL Classification: D720, D740, Q320, Q340


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Date posted: February 15, 2017  

Suggested Citation

Lessmann, Christian and Steinkraus, Arne, The Geography of Natural Resources, Ethnic Inequality and Development (January 24, 2017). CESifo Working Paper Series No. 6299. Available at SSRN: https://ssrn.com/abstract=2917209

Contact Information

Christian Lessmann (Contact Author)
CESifo (Center for Economic Studies and Ifo Institute) - Ifo Institute ( email ) ( email )
Poschinger Str. 5
Munich, 01069
Germany
Technology University of Braunschweig ( email )
Abt-Jerusalem-Str. 7
Braunschweig, D-38106
Germany
Ifo Branch Dresden ( email ) ( email )
Poschinger Str. 5
Munich, 01069
Germany
Arne Steinkraus
Institute of Economics ( email )
Abt-Jerusalem-Str. 7
Braunschweig, D-38106
Germany
HOME PAGE: http://https://www.tu-braunschweig.de/vwl
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