Tommaso Sonno (LSE)

“Globalisation and conflicts: the good, the bad, and the ugly of corporations in Africa”

Job Market Seminar

abstract

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 decrease the probability of civil conflict, while the activity of exploitative sectors, in particular agriculture and forestry, increases conflict. The increase in the likelihood of conflict is amplified in areas with politically unrepresented ethnic groups, and/or groups targeted for large-scale land acquisition.