Resources, Conflict, and Economic Development in Africa∗

Natural resources have driven both growth and conflict in modern Africa. We model the interaction of parties engaged in potential conflict over such resources. The likelihood of conflict depends on both the absolute and relative resource endowments of the parties. Resources fuel conflict by raising the gains from appropriation and by increasing fighting strength. Economic prosperity, as a result, is a function of resources and equilibrium conflict prevalence. Using high-resolution spatial data on resources, conflicts, and nighttime lights in sub-Saharan Africa, we find evidence confirming each of the model’s predictions. Model fit is substantially better where institutions are weak, suggesting that policy interventions that improve institutions may be able to loosen the ties between resources, conflict, and growth in Africa.