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| Title: | | Firm exit and armed conflict in Colombia  |
| Authors: | | Camacho, Andriana Rodriguez, Catherine |
| Issue Date: | | 2010 |
| Series/Report no.: | | Working paper // World Institute for Development Economics Research 2010,94 |
| Abstract: | | 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. |
| Subjects: | | conflict firm exit entrepreneurship Colombia |
| JEL: | | D21 J31 R30 |
| ISBN: | | 978-92-9230-332-7 |
| Document Type: | | Working Paper |
| Appears in Collections: | | WIDER Working Papers, United Nations University (UNU)
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