Firm Exit and Armed Conflict in Colombia

By Adriana Camacho, C. Rodríguez. 2010

130 citations recorded by the source corpus.

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.

Subfields: Economics and Econometrics, Sociology and Political Science, Soil Science

View Paper: https://www.semanticscholar.org/paper/b65a77524c6689a89e2e8c0a5c9a2eb4e824f111

How researchers see this paper

The researchers whose trusted networks rank it highest, strongest advocate first. Every researcher gets a different order.

In Economics and Econometrics

1. Juan F. Vargas
2. M. Prem
3. S. Saavedra
4. Nancy Qian

In Sociology and Political Science

1. Juan F. Vargas
2. Nancy Qian

In Soil Science

1. Juan F. Vargas
2. Nancy Qian

Citations in the corpus

• End-of-conflict deforestation: Evidence from Colombia’s peace agreement (2020, background): “On the one hand, conflict can reduce deforestation if armed groups use forest coverage to hide (Fearon and Laitin, 2003), or if investors fear the potential extortion that violent groups could exert on their businesses (Camacho and Rodriguez, 2013).”