Working Paper

This Mine is Mine! How Minerals Fuel Conflicts in Africa

Nicolas Berman, Mathieu Couttenier, Dominic Rohner, Mathias Thoenig
CESifo, Munich, 2015

CESifo Working Paper No. 5409

We combine original geo-referenced data on mining extraction of 15 minerals with information on conflict events at spatial resolution of 0.5o x 0.5o for all Africa over 1997-2010. Exploiting exogenous variations in world prices, we find a positive impact of mining on conict at the local level. Quantitatively, the historical rise in prices (commodity super-cycle) explains 15-25 percent of average country-level violence in Africa. We then document how the appropriation of a mining area by a fighting group contributes to the escalation from local to global violence. Finally, we analyze the impact of corporate practices and transparency initiatives in the mining industry.

CESifo Category
Public Choice
Resources and Environment
Keywords: minerals, mines, conflict, fighting, natural resources, rebellion
JEL Classification: C230, D740, Q340