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Greed and Grievance in Civil War
Paul Collier, CSAE and World Bank
Anke Hoeffler, CSAE

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ABSTRACT:
Abstract We investigate the causes of civil war, using a new data set of wars during 1960-99.We test a `greed’ theory focusing on the ability to finance rebellion, against a`grievance’ theory focusing on ethnic and religious divisions, political repression andinequality. We find that greed considerably outperforms grievance. Consistent withthe greed theory, both dependence upon primary commodity exports and a largediaspora substantially increase the risk of conflict. Inconsistent with the grievance theory, greater ethnic and religious diversity reduce the risk of conflict. The results arerobust to correction for outliers, alternative variable definition, and variations inestimation method.

SUGGESTED CITATION:
Paul Collier and Anke Hoeffler, "Greed and Grievance in Civil War " (July 1, 2002). The Centre for the Study of African Economies Working Paper Series. Working Paper 160.
http://www.bepress.com/csae/paper160