TY - JOUR
T1 - Peaceful entry
T2 - Entrepreneurship dynamics during Colombia's peace agreement
AU - Bernal, Carolina
AU - Prem, Mounu
AU - Vargas, Juan F.
AU - Ortiz, Mónica
N1 - Funding Information:
We thank Michele Di Maio and seminar participants at University of South Carolina, University of Nottingham, Deakin University, Universidad del Rosario, and Universidad de Antioquia for helpful comments and suggestions. We acknowledge funding from the Alianza EFI-Colombia Científica grant with code 60185 and contract number FP44842-220-2018 . Prem acknowledges IAST funding from the French National Research Agency (ANR) under the grant ANR-17-EURE-0010 (Investissements d’Avenir program). Catalina Durán, Lina García, Julian Naranjo, and Andrés Rivera provided excellent research assistance.
Funding Information:
We thank Michele Di Maio and seminar participants at University of South Carolina, University of Nottingham, Deakin University, Universidad del Rosario, and Universidad de Antioquia for helpful comments and suggestions. We acknowledge funding from the Alianza EFI-Colombia Científica grant with code 60185 and contract number FP44842-220-2018. Prem acknowledges IAST funding from the French National Research Agency (ANR) under the grant ANR-17-EURE-0010 (Investissements d'Avenir program). Catalina Durán, Lina García, Julian Naranjo, and Andrés Rivera provided excellent research assistance.
Publisher Copyright:
© 2023 Elsevier B.V.
PY - 2024/1
Y1 - 2024/1
N2 - The end of internal conflict is often shaped by political uncertainty and threats of violence recurrence. This implies that the effects of conflict termination on economic activity and specifically entrepreneurship can go in either direction, and we know little about this relationship. Studying Colombia's recent peace agreement with the FARC guerrilla, 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 jobs. Instead, when the agreement was rejected in a referendum, the party that promoted this rejection raised to power, and violence re-escalated, the rate of firms’ creation rapidly reversed.
AB - The end of internal conflict is often shaped by political uncertainty and threats of violence recurrence. This implies that the effects of conflict termination on economic activity and specifically entrepreneurship can go in either direction, and we know little about this relationship. Studying Colombia's recent peace agreement with the FARC guerrilla, 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 jobs. Instead, when the agreement was rejected in a referendum, the party that promoted this rejection raised to power, and violence re-escalated, the rate of firms’ creation rapidly reversed.
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U2 - 10.1016/j.jdeveco.2023.103119
DO - 10.1016/j.jdeveco.2023.103119
M3 - Article
AN - SCOPUS:85173168405
SN - 0304-3878
VL - 166
JO - Journal of Development Economics
JF - Journal of Development Economics
M1 - 103119
ER -
