Oil Prices and Interstate Conflict Behavior
22 Pages Posted: 2 Aug 2014
Date Written: July 31, 2014
Anecdotal evidence suggests high oil prices embolden leaders in oil-rich states to pursue more aggressive foreign policies. This article tests the conjecture in a sample of 153 countries for the time period 1947-2001. It finds strong evidence of a contingent effect of oil prices on interstate disputes, with high oil prices associated with significant increases in dispute behavior among oil-exporting states, while having either a negative or null effect on dispute behavior in nonexporting states.
Keywords: oil, conflict, diplomacy, Russia, Iran, Venezuela, resource curse
JEL Classification: D74, F51, Q41
Suggested Citation: Suggested Citation