Firm exit and armed conflict in Colombia

Arbeitspapier

This paper uses two unique panel data sets to study the causal effect that armed conflict has over entrepreneurial activity 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 in the number of guerrilla and paramilitary attacks in a municipality increases the probability of firm exit in 8.1 percentage points. This effect is stronger for smaller plants and has a differential impact with respect to firms' age.

Object Details

• ISBN: 978-92-9230-332-7
• Language: Englisch

References and Relationships

• Bibliographic citation: Series: WIDER Working Paper ; No. 2010/94

Classification and Topics

• Classification: Wirtschaft ; Firm Behavior: Theory ; Wage Level and Structure; Wage Differentials ; Real Estate Markets, Spatial Production Analysis, and Firm Location: General
• Subject: conflict ; firm exit ; entrepreneurship ; Colombia

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Camacho, Andriana ; Rodriguez, Catherine
• Event: Veröffentlichung
• (who): The United Nations University World Institute for Development Economics Research (UNU-WIDER)
• (where): Helsinki
• (when): 2010

Further information

• Handle: http://hdl.handle.net/10419/54163
• Last update: 10.03.2025, 11:42 AM CET