Using georeferenced data on the affiliates and headquarters of multinational enterprises together with georeferenced conflict data, this work is the first to establish a causal link between the activities of multinational enterprises and violence. The results indicate that activities which increase local human capital, such as education and health, decrease the probability of civil conflict, while the activity of sectors intense in scarce resources, in particular forestry, increases conflict. The increase in the likelihood of conflict is amplified especially in areas where the leading ethnic groups can place the burden of land deals on unrepresented groups.

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14 January 2020     Paper Number CEPDP1670

Download PDF - Globalization and conflicts: the good, the bad and the ugly of corporations in Africa

This CEP discussion paper is published under the centre's Trade programme.