Firm Exit and Armed Conflict in Colombia

Adriana Camacho and Catherine Rodriguez

No wp-2010-094, WIDER Working Paper Series from World Institute for Development Economic Research (UNU-WIDER)

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.

Keywords: Organizational behavior; Panel analysis; Wages (search for similar items in EconPapers)
Date: 2010
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Related works:
Journal Article: Firm Exit and Armed Conflict in Colombia (2013)
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Persistent link: https://EconPapers.repec.org/RePEc:unu:wpaper:wp-2010-094

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