Resource Curse Reversed? Oil Boosts Peace in Xinjiang

Resource Curse Reversed

A study on China's Xinjiang region investigates how natural resource extraction influences ethnic violence. Contrary to the 'resource curse' theory, analysis of eighty-six counties reveals that higher oil and gas production correlates with lower violent incidents.

Unexpected Result

The positive effect of resources diminishes in areas with greater mosque density,

reducing the protective influence.

Findings & Mechanisms

• Economic Conditions: Resource development improves local employment and income for state-owned enterprise employees.
• Violence Factors: Analysis finds no link between resource extraction and ethno-demographic shifts or increased public security. The reduction in violence is tied to economic improvements.

Geographic Scope

The study focuses specifically on Xinjiang, China.