Firm Exit and Armed Conflict in Colombia

Adriana Camacho and Catherine Rodriguez

Journal of Conflict Resolution, 2013, vol. 57, issue 1, 89-116

Abstract: This article uses two unique panel data sets to study the causal effect that armed conflict has over firm exit in Colombia. Using a fixed-effect estimation methodology at the plant level and controlling for the possible endogeneity of armed conflict through the use of instrumental variables, we find that a one-standard deviation ( SD ) increase in the number of guerrilla and paramilitary attacks in a municipality increases the probability of plant exit in 5.5 percentage points or .28 SD . This effect is stronger for younger manufacturing plants, with a smaller number of workers and low levels of capital.

Keywords: conflict; firm exit; entrepreneurship; Colombia (search for similar items in EconPapers)
Date: 2013
References: Add references at CitEc
Citations: View citations in EconPapers (36)

Downloads: (external link)
http://jcr.sagepub.com/content/57/1/89.abstract (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:sae:jocore:v:57:y:2013:i:1:p:89-116

Access Statistics for this article

More articles in Journal of Conflict Resolution from Peace Science Society (International)
Bibliographic data for series maintained by SAGE Publications ().