Natural Resources, Conflict and Growth Nexus

Abstract

Using panel data and GMM estimators we find that conflict and less developed countries (LDCs) natural resources have a positive and significant impact on GDP in the developed countries (DCs), while the lagged value of the conflict coefficient has a negative and significant impact on GDP in the LDCs for the period 1980-2006. In the conflict model using panel data GMM estimates on oil, gas and coal production in the LDCs have a profound impact on world conflict.