We conduct an econometric analysis of the economic and social factors which contributed to the spread of violent conflict in Nepal. We find that conflict intensity is significantly higher in places with greater poverty and lower levels of economic development. Violence is higher in locations that favor insurgents, such as mountains and forests. We find weaker evidence that caste divisions in society are correlated with the intensity of civil conflict, while linguistic diversity has little impact.
Iyer, Lakshmi, and Quy-Toan Do. “Poverty, Social Divisions and Conflict in Nepal.” Working Paper 2007-1, Weatherhead Center for International Affairs, Harvard University, 2007.