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Title:Peace, farm and food: The effect of peace on investment and food consumption decisions
Author(s):Nino Chaparro, Gustavo Enrique
Advisor(s):Christensen, Peter
Contributor(s):Baylis, Katherine; Crost, Benjamin; Herrera Almanza, Catalina
Department / Program:Agr & Consumer Economics
Discipline:Agricultural & Applied Econ
Degree Granting Institution:University of Illinois at Urbana-Champaign
Subject(s):peace, war, investment, food, consumption
Abstract:This paper studies how peace driven by the demobilization of a non-state armed group affect household's investment decisions and their welfare in the short run. Starting in 2012, the government of Colombia engaged in a peace process that ended with the demobilization of the country's biggest non-state armed group, FARC. This process had multiple cease fire arrangements in 2013 and 2014 that reduced the exposure to violence in those places that were previously under the control of an armed group. Using the presence of armed groups as a measure of exposure to the war through a difference in difference approach, I find that the FARC's demobilization process led to a more than threefold increase in farm investment in areas previously affected by the group, as farmers moved production from annual to perennial crops. I find no evidence that investment came at the expense of short-term consumption. Finally, I find evidence of substantial positive spillovers in investment to neighboring areas that were not directly affected by the FARC. The results suggest that decreased investment may be an important mechanism through which armed conflict affects economic development.
Issue Date:2021-04-27
Rights Information:Copyright 2021 Gustavo Nino Chaparro
Date Available in IDEALS:2021-09-17
Date Deposited:2021-05

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