Working Paper No . 2010 / 94 Firm Exit and Armed Conflict in Colombia

@inproceedings{Camacho2010WorkingPN,
  title={Working Paper No . 2010 / 94 Firm Exit and Armed Conflict in Colombia},
  author={Adriana Camacho and Catherine Rodriguez},
  year={2010}
}
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… CONTINUE READING