Natural Resources and Violent Conflict

We discuss the literature on natural resources and violent conflict. The theoretical literature is rich and ambiguous, and the empirical literature is equally multi-faceted. Theory predicts that resource booms or discoveries may attenuate or accentuate the risk of conflict, depending on various factors. Regression analyses also produce mixed signals, and point to a plethora of mechanisms linking resources to conflict. The empirical literature is gradually evolving from cross-country conflict models to micro-level analyses, explaining variation in local intensity of conflict. This transition has resulted in more credible identification strategies, and an enhanced understanding of the complex relation between resources and conflict