Revisiting natural resources-conflict nexus

Abstract

This paper analyses the threshold effect of natural resources on internal conflict in 124 countries over the period 1984–2017 using panel smooth transition regression approach. Data used in this study is obtained from International Country Risk Guide and World Development Indicator. The results suggest that the effect of natural resources on internal conflict is non-linear. Moreover, this study highlights the fact that natural resources fueling conflict is far from being conclusive. Nevertheless, the results also indicate that the effect of GDP per capita, ethnic tension and population growth rate on internal conflict change as natural resource increases.