[go: up one dir, main page]
More Web Proxy on the site http://driver.im/
IDEAS home Printed from https://ideas.repec.org/p/hic/wpaper/300.html
   My bibliography  Save this paper

Good Intentions Gone Bad? The Dodd-Frank Act and Conflict in Africa’s Great Lakes Region

Author

Listed:
  • Jeffrey R. Bloem

    (PhD Student, Department of Applied Economics, University of Minnesota)

Abstract
The Dodd-Frank Act imposes reporting requirements on US companies regarding supply chain links to conflict minerals. Previous research uses within-DRC variation in the location of mineral mines to identify the effect of the Dodd-Frank Act on conflict. Due to the presence of spillovers, these previous estimates may underestimate the effect. Moreover, the legislation regulates reporting on minerals mined in the DRC and all countries surrounding the DRC. To fully evaluate this legislation, I investigate the prevalence of conflict events in the DRC and all surrounding countries. Difference-in-differences estimates suggest that, although there is no evidence of any reduction in conflict within all covered countries pooled together, the unintended consequences of this legislation within the DRC may be larger than previously reported. Supplemental analyses (i) investigate possible mechanisms that drive these results and (ii) find that the enforcement suspension of the legislation is unlikely to reduce conflict in the DRC.

Suggested Citation

  • Jeffrey R. Bloem, 2019. "Good Intentions Gone Bad? The Dodd-Frank Act and Conflict in Africa’s Great Lakes Region," HiCN Working Papers 300, Households in Conflict Network.
  • Handle: RePEc:hic:wpaper:300
    as

    Download full text from publisher

    File URL: https://hicn.org/wp-content/uploads/2019/04/HiCN-WP-300.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Nik Stoop & Marijke Verpoorten & Peter van der Windt, 2018. "More Legislation, More Violence? The Impact of Dodd-Frank in the DRC," SALDRU Working Papers 231, Southern Africa Labour and Development Research Unit, University of Cape Town.
    2. Timothy Besley & Torsten Persson, 2010. "State Capacity, Conflict, and Development," Econometrica, Econometric Society, vol. 78(1), pages 1-34, January.
    3. Gary S. Becker, 1974. "Crime and Punishment: An Economic Approach," NBER Chapters, in: Essays in the Economics of Crime and Punishment, pages 1-54, National Bureau of Economic Research, Inc.
    4. Sarsons, Heather, 2015. "Rainfall and conflict: A cautionary tale," Journal of Development Economics, Elsevier, vol. 115(C), pages 62-72.
    5. Rafael Reuveny & John W. Maxwell, 2001. "Conflict and Renewable Resources," Journal of Conflict Resolution, Peace Science Society (International), vol. 45(6), pages 719-742, December.
    6. Ore Koren, 2018. "Food Abundance and Violent Conflict in Africa: Response to Marshall Burke’s Comments," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 100(4), pages 1010-1011.
    7. Francesco Caselli & Wilbur John Coleman II, 2013. "On The Theory Of Ethnic Conflict," Journal of the European Economic Association, European Economic Association, vol. 11, pages 161-192, January.
    8. Dominic P. Parker & Bryan Vadheim, 2017. "Resource Cursed or Policy Cursed? US Regulation of Conflict Minerals and Violence in the Congo," Journal of the Association of Environmental and Resource Economists, University of Chicago Press, vol. 4(1), pages 1-49.
    9. Christian,Paul J. & Barrett,Christopher B., 2017. "Revisiting the effect of food aid on conflict : a methodological caution," Policy Research Working Paper Series 8171, The World Bank.
    10. Alberto Abadie & Susan Athey & Guido W Imbens & Jeffrey M Wooldridge, 2023. "When Should You Adjust Standard Errors for Clustering?," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 138(1), pages 1-35.
    11. Hodler, Roland, 2006. "The curse of natural resources in fractionalized countries," European Economic Review, Elsevier, vol. 50(6), pages 1367-1386, August.
    12. Oeindrila Dube & Juan F. Vargas, 2013. "Commodity Price Shocks and Civil Conflict: Evidence from Colombia," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 80(4), pages 1384-1421.
    13. Scott Cunningham & Manisha Shah, 2018. "Decriminalizing Indoor Prostitution: Implications for Sexual Violence and Public Health," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 85(3), pages 1683-1715.
    14. Samuel Bazzi & Christopher Blattman, 2014. "Economic Shocks and Conflict: Evidence from Commodity Prices," American Economic Journal: Macroeconomics, American Economic Association, vol. 6(4), pages 1-38, October.
    15. Nicolas Berman & Mathieu Couttenier & Dominic Rohner & Mathias Thoenig, 2017. "This Mine Is Mine! How Minerals Fuel Conflicts in Africa," American Economic Review, American Economic Association, vol. 107(6), pages 1564-1610, June.
    16. Oeindrila Dube & Suresh Naidu, 2010. "Bases, Bullets, and Ballots: The Effect of U.S. Military Aid on Political Conflict in Colombia," Working Papers 197, Center for Global Development.
    17. Jean-François Maystadt & Giacomo De Luca & Petros G. Sekeris & John Ulimwengu, 2014. "Mineral resources and conflicts in DRC: a case of ecological fallacy?," Oxford Economic Papers, Oxford University Press, vol. 66(3), pages 721-749.
    18. Collier, Paul & Hoeffler, Anke, 1998. "On Economic Causes of Civil War," Oxford Economic Papers, Oxford University Press, vol. 50(4), pages 563-573, October.
    19. Christa N. Brunnschweiler & Erwin H. Bulte, 2009. "Natural resources and violent conflict: resource abundance, dependence, and the onset of civil wars," Oxford Economic Papers, Oxford University Press, vol. 61(4), pages 651-674, October.
    20. Timothy Besley & Torsten Persson, 2011. "The Logic of Political Violence," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 126(3), pages 1411-1445.
    21. Paul Collier & Anke Hoeffler, 2004. "Greed and grievance in civil war," Oxford Economic Papers, Oxford University Press, vol. 56(4), pages 563-595, October.
    22. Michael L. Ross, 2004. "What Do We Know about Natural Resources and Civil War?," Journal of Peace Research, Peace Research Institute Oslo, vol. 41(3), pages 337-356, May.
    23. Dominic P. Parker & Jeremy D. Foltz & David Elsea, 2016. "Unintended Consequences of Sanctions for Human Rights: Conflict Minerals and Infant Mortality," Journal of Law and Economics, University of Chicago Press, vol. 59(4), pages 731-774.
    24. Marianne Bertrand & Esther Duflo & Sendhil Mullainathan, 2004. "How Much Should We Trust Differences-In-Differences Estimates?," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 119(1), pages 249-275.
    25. Ernesto Dal Bó & Pedro Dal Bó, 2011. "Workers, Warriors, And Criminals: Social Conflict In General Equilibrium," Journal of the European Economic Association, European Economic Association, vol. 9(4), pages 646-677, August.
    26. Abadie, Alberto & Diamond, Alexis & Hainmueller, Jens, 2010. "Synthetic Control Methods for Comparative Case Studies: Estimating the Effect of California’s Tobacco Control Program," Journal of the American Statistical Association, American Statistical Association, vol. 105(490), pages 493-505.
    27. Paivi Lujala, 2010. "The spoils of nature: Armed civil conflict and rebel access to natural resources," Journal of Peace Research, Peace Research Institute Oslo, vol. 47(1), pages 15-28, January.
    28. Grossman, Herschel I. & Mendoza, Juan, 2003. "Scarcity and appropriative competition," European Journal of Political Economy, Elsevier, vol. 19(4), pages 747-758, November.
    29. Ore Koren, 2018. "Food Abundance and Violent Conflict in Africa," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 100(4), pages 981-1006.
    30. Laura E. Seay, 2012. "What’s Wrong with Dodd-Frank 1502? Conflict Minerals, Civilian Livelihoods, and the Unintended Consequences of Western Advocacy- Working Paper 284," Working Papers 284, Center for Global Development.
    31. Alberto Abadie & Alexis Diamond & Jens Hainmueller, 2015. "Comparative Politics and the Synthetic Control Method," American Journal of Political Science, John Wiley & Sons, vol. 59(2), pages 495-510, February.
    32. Michael Spagat & Andrew Mack & Tara Cooper & Joakim Kreutz, 2009. "Estimating War Deaths," Journal of Conflict Resolution, Peace Science Society (International), vol. 53(6), pages 934-950, December.
    33. Geenen, Sara, 2012. "A dangerous bet: The challenges of formalizing artisanal mining in the Democratic Republic of Congo," Resources Policy, Elsevier, vol. 37(3), pages 322-330.
    34. Thomas C. Buchmueller & John DiNardo & Robert G. Valletta, 2011. "The Effect of an Employer Health Insurance Mandate on Health Insurance Coverage and the Demand for Labor: Evidence from Hawaii," American Economic Journal: Economic Policy, American Economic Association, vol. 3(4), pages 25-51, November.
    35. Grossman, Herschel I, 1991. "A General Equilibrium Model of Insurrections," American Economic Review, American Economic Association, vol. 81(4), pages 912-921, September.
    36. Paul Collier & Anke Hoeffler & Dominic Rohner, 2009. "Beyond greed and grievance: feasibility and civil war," Oxford Economic Papers, Oxford University Press, vol. 61(1), pages 1-27, January.
    37. Clionadh Raleigh & rew Linke & HÃ¥vard Hegre & Joakim Karlsen, 2010. "Introducing ACLED: An Armed Conflict Location and Event Dataset," Journal of Peace Research, Peace Research Institute Oslo, vol. 47(5), pages 651-660, September.
    38. Janus, Thorsten, 2012. "Natural resource extraction and civil conflict," Journal of Development Economics, Elsevier, vol. 97(1), pages 24-31.
    39. Paul Collier & V. L. Elliott & Håvard Hegre & Anke Hoeffler & Marta Reynal-Querol & Nicholas Sambanis, 2003. "Breaking the Conflict Trap : Civil War and Development Policy," World Bank Publications - Books, The World Bank Group, number 13938.
    40. James D. Fearon, 2005. "Primary Commodity Exports and Civil War," Journal of Conflict Resolution, Peace Science Society (International), vol. 49(4), pages 483-507, August.
    41. Marc F. Bellemare, 2015. "Rising Food Prices, Food Price Volatility, and Social Unrest," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 97(1), pages 1-21.
    42. Ehrlich, Isaac, 1973. "Participation in Illegitimate Activities: A Theoretical and Empirical Investigation," Journal of Political Economy, University of Chicago Press, vol. 81(3), pages 521-565, May-June.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Nino, Gustavo & Baylis, Kathy & Crost, Benjamin, 2022. "Conflict and Small-scale Investment: Evidence from Colombia Peace Agreement," 2022 Annual Meeting, July 31-August 2, Anaheim, California 322323, Agricultural and Applied Economics Association.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Stoop, Nik & Verpoorten, Marijke & van der Windt, Peter, 2019. "Artisanal or industrial conflict minerals? Evidence from Eastern Congo," World Development, Elsevier, vol. 122(C), pages 660-674.
    2. Jeffrey R. Bloem, 2023. "Good Intentions Gone Bad? The Dodd-Frank Act and Conflict in Africa’s Great Lakes Region," Economic Development and Cultural Change, University of Chicago Press, vol. 71(2), pages 621-666.
    3. Mahdi FAWAZ, 2020. "Ressources naturelles et guerres civiles au Moyen-Orient," Bordeaux Economics Working Papers 2020-09, Bordeaux School of Economics (BSE).
    4. Arinze Nwokolo, 2018. "Oil Price Shocks and Civil Conflict: Evidence from Nigeria," HiCN Working Papers 274, Households in Conflict Network.
    5. Morelli, Massimo & Rohner, Dominic, 2015. "Resource concentration and civil wars," Journal of Development Economics, Elsevier, vol. 117(C), pages 32-47.
    6. van der Ploeg, Frederick & Rohner, Dominic, 2012. "War and natural resource exploitation," European Economic Review, Elsevier, vol. 56(8), pages 1714-1729.
    7. Nicolas Berman & Mathieu Couttenier & Dominic Rohner & Mathias Thoenig, 2017. "This Mine Is Mine! How Minerals Fuel Conflicts in Africa," American Economic Review, American Economic Association, vol. 107(6), pages 1564-1610, June.
    8. Camille Laville, 2018. "The econometrical causal analysis of internal conflicts: The evolutions of a growing literature [L’analyse économétrique des conflits internes par l’approche causale : les évolutions d’une littérat," Working Papers hal-01940461, HAL.
    9. Nemera Gebeyehu Mamo, 2018. "Essays on natural resources in Africa: local economic development, multi-ethnic coalitions and armed conflict," Economics PhD Theses 0518, Department of Economics, University of Sussex Business School.
    10. Richard Bluhm & Martin Gassebner & Sarah Langlotz & Paul Schaudt, 2021. "Fueling conflict? (De)escalation and bilateral aid," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 36(2), pages 244-261, March.
    11. Rabah Arezki & Sambit Bhattacharyya & Nemera Mamo, 2015. "Resource Discovery and Conflict in Africa: What do the data show?," OxCarre Working Papers 159, Oxford Centre for the Analysis of Resource Rich Economies, University of Oxford.
    12. Lu, Yifan & Yamazaki, Satoshi, 2023. "Fish to fight: Does catching more fish increase conflicts in Indonesia?," World Development, Elsevier, vol. 170(C).
    13. Farzanegan, Mohammad Reza & Lessmann, Christian & Markwardt, Gunther, 2018. "Natural resource rents and internal conflicts: Can decentralization lift the curse?," Economic Systems, Elsevier, vol. 42(2), pages 186-205.
    14. Camille Laville, 2018. "The econometrical causal analysis of internal conflicts: The evolutions of a growing literature [L’analyse économétrique des conflits internes par l’approche causale : les évolutions d’une littérat," CERDI Working papers hal-01940461, HAL.
    15. Alex Dickson & Ian A. MacKenzie & Petros G. Sekeris, 2022. "The role of markets on resource conflicts," Scandinavian Journal of Economics, Wiley Blackwell, vol. 124(3), pages 677-708, July.
    16. Bloem, Jeffrey R. & Salemi, Colette, 2021. "COVID-19 and conflict," World Development, Elsevier, vol. 140(C).
    17. Eoin McGuirk & Marshall Burke, 2020. "The Economic Origins of Conflict in Africa," Journal of Political Economy, University of Chicago Press, vol. 128(10), pages 3940-3997.
    18. Koppenberg, Maximilian & Mishra, Ashok K. & Hirsch, Stefan, 2023. "Food Aid and Violent Conflict: A Review of Literature," IZA Discussion Papers 16574, Institute of Labor Economics (IZA).
    19. Massimo Morelli & Dominic Rohner, 2023. "Natural resources and conflict: The crucial role of power mismatch and geographic asymmetries," Working Papers 698, IGIER (Innocenzo Gasparini Institute for Economic Research), Bocconi University.
    20. Francesco Amodio & Leonardo Baccini & Michele Di Maio, 2021. "Security, Trade, and Political Violence," Journal of the European Economic Association, European Economic Association, vol. 19(1), pages 1-37.

    More about this item

    Keywords

    Conflict; Minerals; Natural Resources; International Trade Policy; Civil War;
    All these keywords.

    JEL classification:

    • D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances; Revolutions
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • O25 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Industrial Policy
    • Q17 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agriculture in International Trade

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:hic:wpaper:300. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Tilman Brück or the person in charge or the person in charge or the person in charge (email available below). General contact details of provider: https://hicn.org/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.