Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/145041 
Year of Publication: 
2016
Series/Report no.: 
CESifo Working Paper No. 6006
Publisher: 
Center for Economic Studies and ifo Institute (CESifo), Munich
Abstract: 
We study the effect of large-scale land acquisitions on the risk of ethnic tensions for a sample of 133 countries for the 2000-2012 period. Running a series of fractional response models, we find that more land grabbing activity is associated with a higher risk of ethnic tensions, indicating that the negative effects of land deals outweigh their potential benefits. In addition to that, we also show that democratic institutions may moderate the relationship between land deals and ethnic tensions. That is, non-democratic countries face a substantially higher risk of ethnic tensions as the level of large-scale land acquisitions increases; by contrast, strongly democratic countries tend to see lower ethnic tension risk.
Subjects: 
large-scale land acquisitions
land grabbing
conflict
ethnic tensions
democratic accountability
weak institutions
JEL: 
F21
F63
O13
O43
Q15
Document Type: 
Working Paper
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