Singh, Prakarsh (2011): Impact of terrorism on investment decisions of farmers: evidence from the Punjab insurgency.
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This paper provides evidence for a particular channel through which sustained terrorism in rural areas may affect growth in developing countries. Using micro-level data from agricultural surveys during the period of insurgency in Punjab (India), I find significant negative effects of terrorism on the level of investment in long-term agricultural technology but effects are small and insignificant for short-term investment. The presence of a major terrorist incident in a district in a year reduces long-term fixed investment by around 17% after controlling for district fixed-effects, time trends, district trends and other farm-level controls. These negative effects are greater for richer farmers and those living in bordering districts. This results in a farmer losing close to 4% of his income annually because of the insurgency.
|Item Type:||MPRA Paper|
|Original Title:||Impact of terrorism on investment decisions of farmers: evidence from the Punjab insurgency|
|Keywords:||Terrorism, Rural Conflict, Violence, Investment, Agriculture, Farmers, Punjab|
|Subjects:||D - Microeconomics > D2 - Production and Organizations > D21 - Firm Behavior: Theory
D - Microeconomics > D7 - Analysis of Collective Decision-Making > D74 - Conflict; Conflict Resolution; Alliances
O - Economic Development, Technological Change, and Growth > O1 - Economic Development > O16 - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
O - Economic Development, Technological Change, and Growth > O1 - Economic Development > O13 - Agriculture; Natural Resources; Energy; Environment; Other Primary Products
D - Microeconomics > D9 - Intertemporal Choice and Growth > D92 - Intertemporal Firm Choice and Growth, Financing, Investment, and Capacity
|Depositing User:||Prakarsh Singh|
|Date Deposited:||14. Sep 2011 01:16|
|Last Modified:||16. Feb 2013 08:35|
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