Peaceful Entry: Entrepreneurship Dynamics during Colombia's Peace Agreement

While there is a large literature on how conflict affects entrepreneurship and private investment, much less is known about how the end of a conflict affects businesses and firms' creation. A priory, the direction of the effect is not obvious, as conflicts bequest poverty traps and inequality t...

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Autores:
Tipo de recurso:
Fecha de publicación:
2022
Institución:
Universidad del Rosario
Repositorio:
Repositorio EdocUR - U. Rosario
Idioma:
eng
OAI Identifier:
oai:repository.urosario.edu.co:10336/33434
Acceso en línea:
https://doi.org/10.48713/10336_33434
https://repository.urosario.edu.co/handle/10336/33434
Palabra clave:
Economía laboral
D74, D22
Conflict
Peace Agreement
Firm entry
Colombia
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License
http://purl.org/coar/access_right/c_abf2
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repository_id_str
spelling Peaceful Entry: Entrepreneurship Dynamics during Colombia's Peace AgreementEconomía laboralD74, D22ConflictPeace AgreementFirm entryColombiaWhile there is a large literature on how conflict affects entrepreneurship and private investment, much less is known about how the end of a conflict affects businesses and firms' creation. A priory, the direction of the effect is not obvious, as conflicts bequest poverty traps and inequality that reduce the returns of investment, and the territorial vacuum of power that is inherent to most post-conflict situations may trigger new violent cycles. Studying Colombia's recent peace agreement and using a difference-in-differences empirical strategy, we document that dynamics of entrepreneurship in traditionally violent areas closely mapped the politics that surrounded the peace agreement. When the agreement was imminent after a 5-decade conflict and violence had plummeted, local investors from all economic sectors established new firms and created more jobs. Instead, when the agreement was rejected by a tiny vote margin in a referendum and the party that promoted this rejection raised to power, the rate of firms' creation rapidly reversed.Universidad del RosarioFacultad de Economía2022-01-182022-01-20T18:37:00Zinfo:eu-repo/semantics/workingPaperhttp://purl.org/coar/version/c_b1a7d7d4d402bccehttp://purl.org/coar/resource_type/c_804239 ppapplication/pdfhttps://doi.org/10.48713/10336_33434 https://repository.urosario.edu.co/handle/10336/33434Abadie, A. (2005): “Semiparametric difference-in-differences estimators,” The Review of Economic Studies, 72, 1–19.Aghion, P., R. Blundell, R. Griffith, P. Howitt, and S. Prantl (2004): “Entry and productivity growth: Evidence from microlevel panel data,” Journal of the European Economic Association, 2, 265–276.Amodio, F. and M. Di Maio (2018): “Making do with what you have: Conflict, input misallocation and firm performance,” The Economic Journal, 128, 2559–2612.Bellemare, M. F. and C. J. Wichman (2020): “Elasticities and the inverse hyperbolic sine transformation,” Oxford Bulletin of Economics and Statistics, 82, 50–61.Belloni, A., V. Chernozhukov, and C. Hansen (2014): “High-dimensional methods and inference on structural and treatment effects,” Journal of Economic Perspectives, 28, 29–50.Bertrand, M., E. Duflo, and S. Mullainathan (2004): “How much should we trust differences-in-differences estimates?” The Quarterly Journal of Economics, 119, 249–275.Blattman, C. and E. Miguel (2010): “Civil war,” Journal of Economic literature, 48, 3–57.Blomberg, S. B. and G. D. Hess (2002): “The temporal links between conflict and economic activity,” The Journal of Conflict Resolution, 46, 74–90.Blumenstock, J. E., T. Ghani, S. R. Herskowitz, E. Kapstein, T. Scherer, and O. Toomet (2018): “Insecurity and industrial organization: Evidence from Afghanistan,” World Bank Policy Research Working Paper.Bruck, T., W. Naud ¨ e, and P. Verwimp ´ (2013): “Business under fire: Entrepreneurship and violent conflict in developing countries,” Journal of Conflict Resolution, 57, 3–19.Camacho, A. and C. Rodriguez (2013): “Firm Exit and Armed Conflict in Colombia,” Journal of Conflict Resolution, 57, 89–116.instname:Universidad del Rosarioreponame:Repositorio Institucional EdocURenghttps://ideas.repec.org/p/col/000092/019938.htmlhttp://purl.org/coar/access_right/c_abf2Bernal, CarolinaOrtiz, MónicaPrem, MounuVargas Duque, Juan Fernandooai:repository.urosario.edu.co:10336/334342022-03-08T10:58:00Z
dc.title.none.fl_str_mv Peaceful Entry: Entrepreneurship Dynamics during Colombia's Peace Agreement
title Peaceful Entry: Entrepreneurship Dynamics during Colombia's Peace Agreement
spellingShingle Peaceful Entry: Entrepreneurship Dynamics during Colombia's Peace Agreement
Economía laboral
D74, D22
Conflict
Peace Agreement
Firm entry
Colombia
title_short Peaceful Entry: Entrepreneurship Dynamics during Colombia's Peace Agreement
title_full Peaceful Entry: Entrepreneurship Dynamics during Colombia's Peace Agreement
title_fullStr Peaceful Entry: Entrepreneurship Dynamics during Colombia's Peace Agreement
title_full_unstemmed Peaceful Entry: Entrepreneurship Dynamics during Colombia's Peace Agreement
title_sort Peaceful Entry: Entrepreneurship Dynamics during Colombia's Peace Agreement
dc.subject.none.fl_str_mv Economía laboral
D74, D22
Conflict
Peace Agreement
Firm entry
Colombia
topic Economía laboral
D74, D22
Conflict
Peace Agreement
Firm entry
Colombia
description While there is a large literature on how conflict affects entrepreneurship and private investment, much less is known about how the end of a conflict affects businesses and firms' creation. A priory, the direction of the effect is not obvious, as conflicts bequest poverty traps and inequality that reduce the returns of investment, and the territorial vacuum of power that is inherent to most post-conflict situations may trigger new violent cycles. Studying Colombia's recent peace agreement and using a difference-in-differences empirical strategy, we document that dynamics of entrepreneurship in traditionally violent areas closely mapped the politics that surrounded the peace agreement. When the agreement was imminent after a 5-decade conflict and violence had plummeted, local investors from all economic sectors established new firms and created more jobs. Instead, when the agreement was rejected by a tiny vote margin in a referendum and the party that promoted this rejection raised to power, the rate of firms' creation rapidly reversed.
publishDate 2022
dc.date.none.fl_str_mv 2022-01-18
2022-01-20T18:37:00Z
dc.type.none.fl_str_mv info:eu-repo/semantics/workingPaper
dc.type.coarversion.fl_str_mv http://purl.org/coar/version/c_b1a7d7d4d402bcce
dc.type.coar.fl_str_mv http://purl.org/coar/resource_type/c_8042
dc.identifier.none.fl_str_mv https://doi.org/10.48713/10336_33434
https://repository.urosario.edu.co/handle/10336/33434
url https://doi.org/10.48713/10336_33434
https://repository.urosario.edu.co/handle/10336/33434
dc.language.none.fl_str_mv eng
language eng
dc.relation.none.fl_str_mv https://ideas.repec.org/p/col/000092/019938.html
dc.rights.coar.fl_str_mv http://purl.org/coar/access_right/c_abf2
rights_invalid_str_mv http://purl.org/coar/access_right/c_abf2
dc.format.none.fl_str_mv 39 pp
application/pdf
dc.publisher.none.fl_str_mv Universidad del Rosario
Facultad de Economía
publisher.none.fl_str_mv Universidad del Rosario
Facultad de Economía
dc.source.none.fl_str_mv Abadie, A. (2005): “Semiparametric difference-in-differences estimators,” The Review of Economic Studies, 72, 1–19.
Aghion, P., R. Blundell, R. Griffith, P. Howitt, and S. Prantl (2004): “Entry and productivity growth: Evidence from microlevel panel data,” Journal of the European Economic Association, 2, 265–276.
Amodio, F. and M. Di Maio (2018): “Making do with what you have: Conflict, input misallocation and firm performance,” The Economic Journal, 128, 2559–2612.
Bellemare, M. F. and C. J. Wichman (2020): “Elasticities and the inverse hyperbolic sine transformation,” Oxford Bulletin of Economics and Statistics, 82, 50–61.
Belloni, A., V. Chernozhukov, and C. Hansen (2014): “High-dimensional methods and inference on structural and treatment effects,” Journal of Economic Perspectives, 28, 29–50.
Bertrand, M., E. Duflo, and S. Mullainathan (2004): “How much should we trust differences-in-differences estimates?” The Quarterly Journal of Economics, 119, 249–275.
Blattman, C. and E. Miguel (2010): “Civil war,” Journal of Economic literature, 48, 3–57.
Blomberg, S. B. and G. D. Hess (2002): “The temporal links between conflict and economic activity,” The Journal of Conflict Resolution, 46, 74–90.
Blumenstock, J. E., T. Ghani, S. R. Herskowitz, E. Kapstein, T. Scherer, and O. Toomet (2018): “Insecurity and industrial organization: Evidence from Afghanistan,” World Bank Policy Research Working Paper.
Bruck, T., W. Naud ¨ e, and P. Verwimp ´ (2013): “Business under fire: Entrepreneurship and violent conflict in developing countries,” Journal of Conflict Resolution, 57, 3–19.
Camacho, A. and C. Rodriguez (2013): “Firm Exit and Armed Conflict in Colombia,” Journal of Conflict Resolution, 57, 89–116.
instname:Universidad del Rosario
reponame:Repositorio Institucional EdocUR
instname_str Universidad del Rosario
institution Universidad del Rosario
reponame_str Repositorio Institucional EdocUR
collection Repositorio Institucional EdocUR
repository.name.fl_str_mv
repository.mail.fl_str_mv
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