Peaceful Entry: Entrepreneurship Dynamics during Colombia's Peace Agreement

Carolina Bernal, Mounu Prem, Juan Vargas and Mónica Ortiz

No 3y7gk_v1, SocArXiv from Center for Open Science

Abstract: The end of internal conflict are often shaped by political uncertainty and threats of violence recurrence. This implies that the effects of conflict termination on economic ac- tivity and specifically entrepreneurship can go in either direction, and we know little about this relationship. Studying Colombia’s recent peace agreement with the FARC guerrilla, and using a difference-in-differences empirical strategy, we document that dynamics of en- trepreneurship in traditionally violent areas closely mapped the politics that surrounded the peace agreement. When the agreement was imminent after a 5-decade conflict and violence had plummeted, local investors from all economic sectors established new firms and created jobs. Instead, when the agreement was rejected in a referendum, the party that promoted this rejection raised to power, and violence re-escalated, the rate of firms’ creation rapidly reversed.

Date: 2022-02-22
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Related works:
Journal Article: Peaceful entry: Entrepreneurship dynamics during Colombia’s peace agreement (2024)
Working Paper: Peaceful Entry: Entrepreneurship Dynamics During Colombia s Peace Agreement (2022)
Working Paper: Peaceful entry: Entrepreneurship dynamics during Colombia’s peace agreement (2022)
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Persistent link: https://EconPapers.repec.org/RePEc:osf:socarx:3y7gk_v1

DOI: 10.31219/osf.io/3y7gk_v1

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