We estimate how a shift towards a more extractive resource policy, brought about by a regulatory reform of the mining sector, affected civil conflict in the Philippines. Our empirical strategy uses a difference-in-differences approach that compares provinces with and without mineral deposits before and after the reform. We find that the reform led to a large increase in conflict violence, most likely due to increased competition over control of resource-rich areas. The estimated welfare cost of this increase in violence is several orders of magnitude larger than the country's total revenue from taxes on mineral production.
Authors and Publishers
Benjamin Crosta
Joseph H.Felterb
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Elsevier is a world-leading provider of information solutions that enhance the performance of science, health, and technology professionals.
All knowledge begins as uncommon—unrecognized, undervalued, and sometimes unaccepted. But with the right perspective, the uncommon can become the exceptional.