Essays on natural resources in Africa: local economic development, multi-ethnic coalitions and armed conflict

This thesis consists of three stand-alone papers. It examines the economic and political effects of natural resources in Africa. In the first paper, we investigate the effect of mining activity on subnational economic development by using satellite data on night lights as a measure of economic development. We find that mineral production and discovery improves local economy. However, we do not observe (strong) general equilibrium effect beyond the confines of a district. In the second paper, we test the link between natural resources and multiethnic power sharing coalitions in Africa. We find that resource discoveries and rising commodity prices increase the probability of representation at the executive branches of government. Our finding supports the idea that resource discoveries and rising commodity prices provide rulers with more revenues to expand the state cabinet sizes; hence they build broader multi-ethnic coalitions. In the third paper, we investigate the association between natural resources and intra-state local armed conflict in Africa. We find that natural resource discoveries do not trigger armed conflict in Africa at the local level. Consistent with the finding in the first paper (positive economic effect) and second paper (positive political effect), resource discovery appears to reduce the likelihood of armed conflict by increasing the opportunity cost of joining armed rebellion