Relationship between Natural Resources Types and Internal Conflict Risk in the MENAP Region Countries in the Context of the Political Resources Curse

Authors
1 Lorestan University
2 Payame Noor University
Abstract
Based on theoretical foundations and empirical studies in the field of the relationship between natural resources and internal conflict, 4 states can be imagined: a. Positive relationship between natural resources abundance and internal conflict (hypothesis of political resources curse) b. positive relationship between natural resources scarcity and internal conflict (hypothesis of political resources endowment) c. Non-linear relationship between natural resources and internal conflict (combination of state A and B) d. Absence of relationship. Based on this, the main purpose of this article is to investigate the relationship between natural resources types and internal conflict risk in the MENAP region countries during the period of 2000-2019 using the System Generalized Method of Moments (SGMM). For this purpose, the index of the percentage share of total natural resource rent from GDP and eight separate indicators including: the percentage share of oil, natural gas, coal, forest and mining rent from GDP, the percentage share of fuel export and the export of ore and metals from the export of goods and the percentage share of arable land in the total area have been used. The results show that there is a U-shaped relationship between the total rent of natural resources and the internal conflict risk; In other words, countries with a shortage of natural resources as well as countries with an abundance of natural resources have a higher internal conflict risk than other countries. This U-shaped relationship is also confirmed for oil rent and fuel export. Also, coal and forest rent have a meaningless effect and arable land has an inverted U effect on the internal conflict risk in the studied countries. The evaluation of the marginal effect of the total rent of natural resources on the internal conflict risk shows that its value varies from -0.08 to 0.1. According to the other results, per capita income and democracy have a negative and significant effect, and population and religious and racial tensions have a positive and significant effect on the internal conflict risk.
Keywords

Angrist, J. & Kugler, A. (2008). Rural Windfall or a New Resource Curse? Coca, Income, and Civil Conflict in Colombia. Review of Economics and Statistics, 90, 191-215.
Arellano, M. & Bond, S. (1991). Some Test of Specification for Panel Data: Monte Carlo Evidence and Application to Employment Equations. Review of Economic Studies, 58, 277-297.
Baltagi, B. (2005). Econometric Analysis of Panel Data. John Wiley & Sons Ltd.
Bazzi, S. & Blattman, C. (2014). Economic Shocks and Conflict: The Evidence from Commodity Prices. American Economic Journal: Macroeconomics, 6, 1-38.
Bell, C. & Wolford, S. (2015). Oil Discoveries, Shifting Power, and Civil Conflict. International Studies Quarterly, 59, 517-530.
Berman, N., Couttenier, M., Rohner, D. & Thoenig, M. (2017). This Mine is Mine! How Minerals Fuel Conflicts in Africa. American Economic Review, 107, 1564-1610.
Blundell, R. & Bond, S. (1998). Initial Conditions and Moment Restrictions in Dynamic Panel Data Models. Journal of Econometrics, 87, 115-143.
Brunnschweiler, C.N. & Bulte, E.H. (2009). Natural Resources and Violent Conflict: Resource Abundance, Dependence, and the Onset of Civil Wars. Oxford Economic Papers, 61, 651-674.
Buonanno, P., Durante, R., Prarolo, G. & Vanin, P. (2015). Poor Institutions, Rich Mines: Resource Curse in the Origins of the Sicilian Mafia. Econ. J, 125(586), F175–F202.
Collier, P. & Hoeffler, A. (1998). On Economic Causes of Civil War. Oxford Economic Papers, 50, 563-573.
Collier, P., Hoeffler, A. & Rohner, D. (2009). Beyond Greed and Grievance: Feasibility and Civil War. oxford Economic papers, 61(1), 1–27.
Cotet, A.M. & Tsui, K.K. (2013). “Oil and Conflict: What Does the Cross-Country Evidence Really Show? American Economic Journal: Macroeconomics, 5, 49-80.
Christensen, D. (2019). Concession stands: how Mining Investments Incite Protest in Africa. Int. Organ, 73(1), 65–101.
De soysa, I. (2002). Paradise is a Bazaar? Greed, Creed, and Governance in Civil War, 1989–99. Journal of Peace Research, 39, 395-416.
Dube, O. & Vargas, J. (2013). Commodity Price Shocks and Civil Conflict: Evidence from Colombia. Review of Economics Studies, 80, 1384-1421.
Elbadawi, I.A, & Soto, R. (2015). Resource Rents, Institutions, and Violent Civil Conflicts. Defence and Peace Economics, 26(1), 89-113.
Falahati, A; Nazari, S. & Poshtehkeshi M. (2020). Institutional Quality, Natural Resource Rent, and Shadow Economy. JEMR, 11(39), 149-185. (In Persian)
Farzanegan, M.R., Lessmann, C. & Markwardt, G. (2018). Natural Resource Rents and Internal Conflicts: Can Decentralization Lift the Curse? Economic Systems, 42, 186-205.
Fearon, J.D. (2004). Why Do Some Civil Wars Last So Much Longer than Others? Journal of Peace Research, 41, 275-301.
Fearon, J.D. (2005). Primary Commodity Exports and Civil War. Journal of Conflict Resolution, 49(4), 483–507.
Fearon, J.D. & Laitin, D. (2003). Ethnicity, Insurgency, and Civil War. American Political Science Review, 97 (1), 75-91.
Fjelde, H. (2009). Buying peace? Oil Wealth, Corruption and Civil War, 1985-99. J. Peace Res, 46(2), 199–218.
Freytag, A., Krüger, J. J., Meierrieks, D., & Schneider, F. (2011). The Origins of Terrorism: Cross Country Estimates of Socio‐Economic Determinants of Terrorism. European Journal of Political Economy, 27, 5-16.
Ghazalian, P.L & Hammoud, M. (2020). The Peace Level of Nations: An Empirical Investigation into the Determining Factors. Defence and Peace Economics. DOI: 10.1080/10242694.2020.1743957
Gizelis, T.I. & Wooden, A.E. (2010). Water Resources, Institutions & Intrastate Conflict. Polit. Geogr, 29(8), 444-453.
Goldstone, J.A. (2018). Demography, Environment, and Security, in Environmental Conflict. Routledge, 84-108.
Golkhandan, A. (2017). Dynamic Analysis of the Relationship between Natural Resources and Militarism in the Middle East Countries. Strategic Studies of public policy, 7(22), 19-37. (In Persian)
Golkhandan, A. & Mohammadian Mansour (2021). Factors Affecting the Occurrence of Terrorist Incidents in MENA Region: A Panel Data Approach. Security Research Quarterly, 9(1), 209-230. (In Persian)
Green, W.H. (2010). Econometric Analysis. 7th ed, New Jersey, Upper Saddle River: Pearson International.
Homer-Dixon, T.F. (1994). Environmental Scarcities and Violent Conflict: Evidence from Cases. International security, 19(1), 5–40.
Homer-Dixon, T.F. (1999). Environment, Scarcity and Violence. Princeton: Princeton University Press.
Humphreys, J. (2012). Resource Wars: Searching for a New Definition. International Affairs, 88(5), 1065–1082.
Humphreys, M. (2005). Natural Resources, Conflict, and Conflict Resolution: Uncovering the Mechanisms. Journal of Conflict Resolution, 49, 508-37.
Hwang, I. (2012). The Impacts of Globalization on Internal Conflict. EPIK Journals, 3(3).
Im, K.S., Pesaran, M.H. & Shin, Y. (2003). Testing for Unit Roots in Heterogeneous Panels. Journal of Econometrics, 115, 53-74.
Kao, C. (1999). Spurious Regression and Residual-Based Tests for Co-integration in Panel Data. Journal of Econometrics, 90, 1-44.
Klare, M. (2001). Resource wars: the new landscape of global conflict. Metropolitan Books.
Koubi, V., Spilker, G., Böhmelt, T. & Bernauer, T. (2014). Do Natural Resources Matter for Interstate and Intrastate Armed Conflict? Journal of Peace Research, 51(2), 227–243.
Le Billon, P. (2007). Geographies of War: Perspectives on Resource Wars. Geography Compass, 1(2), 163–182.
Lei, Y. & Michaels, G. (2014). Do Giant Oil Field Discoveries Fuel Internal Armed Conflicts? Journal of Development Economics, 110, 139-157.
Lujala, P., Gleditsch, N. P. & Gilmore, E. (2005). A Diamond Curses? Civil War and a Loot Able Resource. Journal of Conflict Resolution, 49(4), 538–562.
Lujala, P. (2009). Deadly Combat over Natural Resources: Gems, Petroleum, Drugs, and the Severity of Armed Civil Conflict. Journal of Conflict Resolution, 53, 50-71.
Lujala, P. (2010). The Spoils of Nature: Armed Civil Conflict and Rebel Access to Natural Resources. Journal of Peace Research, 47, 15-28.
Magnus Theisen, O. (2008). Blood and Soil? Resource Scarcity and Internal Armed Conflict Revisited. Journal of Peace Research, 45(6), 801–818.
Mejia, D. & Restrepo, P. (2015). Bushes and Bullets: Illegal Cocaine Markets and Violence in Colombia. Boston University, working paper.
Morelli, M & Rohner, D. (2015). Resource Concentration and Civil Wars. Journal of Development Economics, 117, 32-47.
Musayev, V. (2016). Externalities in Military Spending and Growth: The Role of Natural Resources as a Channel through Conflict, Defence and Peace Economics, DOI:10.1080/10242694.2014.994833.
Nochi Faha, D.R. (2021). Revisiting Natural Resources-Conflict Nexus. Resources Policy, Elsevier, vol. 70(C).
Olsson, O. (2007). Conflict diamonds. Journal of Development Economics, 82, 267-286.
Østby, G., Nordås, R., Rød, J.K. (2009). Regional Inequalities and Civil Conflict in Sub- Saharan Africa. Int. Stud. Q, 53(2), 301–324.
Percival, V. & Homer-Dixon, T. (1995). Environmental Scarcity and Violent Conflict: the Case of Rwanda.
Peters, S. (2004). Coercive Western Energy Security Strategies: Resource Wars as a New Threat to Global Security. Geopolitics, 9(1), 187-212.
Price-Smith, A.T. (2015). Oil, Illiberalism, and War: An Analysis of Energy and US Foreign Policy, MIT Press.
Rabiei, M. (2022). The Study of ICT and Income Distribution Effects on Social Unrest in Iran. The Economic Research, 22(1), 175-204. (In Persian)
Rohner, D. (2017). Natural Resources and Conflict. https://doi.org/10.1057/978-1-349-95121-5_3061-2
Raleigh, C. & Urdal, H. (2007). Climate Change, Environmental Degradation and Armed Conflict. Polit. Geogr. 26(6), 674-694.
Ross, M.L. (2004). How Do Natural Resources Influence Civil War? Evidence from 13 Cases. International Organizations, 58, 35-68.
Ross, M.L. (2006). A Closer Look at Oil, Diamonds, and Civil War. Annual Review of Political Science, 9, 265-300.
Shahabadi A. & Pourjavan, A. (2014). The Effect of the Natural Resources Abundance on the Governance Preformance in the Selected Oil Exporting and Developed Countries (A Panel GMM Approach). JEMR, 5(16), 1-32. (In Persian)
Simon, J.L. & Bartlett, A.A. (1985), The Ultimate Resource.
Sini, S., Abdul-Rahim, A.S. & Chindo, S. (2021). Does Natural Resource Influence Conflict in Africa? Evidence from Panel Nonlinear Relationship. Resources Policy, Elsevier, vol. 74(C).
Stern, R. J. (2016). Oil Scarcity Ideology in us Foreign Policy, 1908–97. Security Studied, 25(2), 214-257.
Themnér, L. & Wallensteen, P. (2012). Armed Conflict, 1946–2011. Journal of Peace Research, 49(4).
Thies, C. (2010). Of Rulers, Rebels, and Revenue: State Capacity, Civil War Onset, and Primary Commodities. J. Peace Res, 47(3), 321-332.
Theisen, O.M. (2012). Climate Clashes? Weather Variability, Land Pressure, and Organized Violence in Kenya, 1989–2004. J. Peace Res, 49(1), 81–96.
Vesco, P., Dasgupta, S., De Cian, E. & Carraro, C. (2020). Natural Resources and Conflict: A Meta-Analysis of the Empirical Literature. Ecol. Econ, 172, 106633.
Wegenast, T. (2016). Oil, Natural Gas, and Intrastate Conflict: Does Ownership Matter? International Interactions, 42(1), 31-55.