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Commodity price shocks and civil conflict: Evidence from Colombia

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dc.creatorDube O.spa
dc.creatorVargas Duque, Juan Fernandospa
dc.date.accessioned2020-05-25T23:58:54Z
dc.date.available2020-05-25T23:58:54Z
dc.date.created2013spa
dc.description.abstractHow do income shocks affect armed conflict? Theory suggests two opposite effects. If labour is used to appropriate resources violently, higher wages may lower conflict by reducing labour supplied to appropriation. This is the opportunity cost effect. Alternatively, a rise in contestable income may increase violence by raising gains from appropriation. This is the rapacity effect. Our article exploits exogenous price shocks in international commodity markets and a rich dataset on civil war in Colombia to assess how different income shocks affect conflict.We examine changes in the price of agricultural goods (which are labour intensive) as well as natural resources (which are not).We focus on Colombia's two largest exports, coffee and oil. We find that a sharp fall in coffee prices during the 1990s lowered wages and increased violence differentially in municipalities cultivating more coffee. This is consistent with the coffee shock inducing an opportunity cost effect. In contrast, a rise in oil prices increased both municipal revenue and violence differentially in the oil region. This is consistent with the oil shock inducing a rapacity effect.We also show that this pattern holds in six other agricultural and natural resource sectors, providing evidence that price shocks affect conflict in different directions depending on the type of the commodity. © The Author 2013. Published by Oxford University Press on behalf of The Review of Economic Studies Limited.eng
dc.format.mimetypeapplication/pdf
dc.identifier.doihttps://doi.org/10.1093/restud/rdt009
dc.identifier.issn00346527
dc.identifier.issn1467937X
dc.identifier.urihttps://repository.urosario.edu.co/handle/10336/22947
dc.language.isoengspa
dc.relation.citationEndPage1421
dc.relation.citationIssueNo. 4
dc.relation.citationStartPage1384
dc.relation.citationTitleReview of Economic Studies
dc.relation.citationVolumeVol. 80
dc.relation.ispartofReview of Economic Studies, ISSN:00346527, 1467937X, Vol.80, No.4 (2013); pp. 1384-1421spa
dc.relation.urihttps://www.scopus.com/inward/record.uri?eid=2-s2.0-84876586047&doi=10.1093%2frestud%2frdt009&partnerID=40&md5=b16f2efa3f6abf7e6275514bb7ea0ec6spa
dc.rights.accesRightsinfo:eu-repo/semantics/openAccess
dc.rights.accesoAbierto (Texto Completo)spa
dc.source.instnameinstname:Universidad del Rosariospa
dc.source.reponamereponame:Repositorio Institucional EdocURspa
dc.subject.keywordCivil warspa
dc.subject.keywordCommodity marketspa
dc.subject.keywordCommodity pricespa
dc.subject.keywordExportspa
dc.subject.keywordIncome distributionspa
dc.subject.keywordInternational tradespa
dc.subject.keywordNatural resourcespa
dc.subject.keywordColombiaspa
dc.subject.keywordCommodity pricesspa
dc.subject.keywordConflictspa
dc.subject.keywordIncome shocksspa
dc.subject.keywordNatural resourcesspa
dc.titleCommodity price shocks and civil conflict: Evidence from Colombiaspa
dc.typearticleeng
dc.type.hasVersioninfo:eu-repo/semantics/publishedVersion
dc.type.spaArtículospa
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