Does credit availability mitigate domestic conflict?

This paper establishes that lack of credit is one the root causes conflict; with being scarce, productive endeavours are less attractive and conflict-led activities more appealing at margin. Our investigation contributes to literature which predominantly focused on role income inequality for conflict incidence, but not availability in particular. A theoretical framework developed endogenous occupation choices, demonstrating mitigates conflict, especially developing countries. The empirical analysis uses novel instruments focusing heterogeneous land reform implementations their cumulative impact. Using data from 143 countries over period 1960–2010, there robust evidence incidence decreasing availability, pro-poor reforms subsuming ceiling, expropriation redistributive type motives. Thus, policies ease will be beneficial mitigating civil strife, particularly