Civil Conflict and Firm Performance : Evidence from Cote d'Ivoire

This paper investigates the impact of political instability and civil conflict on firms. It studies the unrest in Cote d'Ivoire that began in 2000, using a census of all registered firms for the years 1998-2003. The analysis uses structural es...

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Main Authors:	Klapper, Leora, Richmond, Christine, Tran, Trang
Format:	Policy Research Working Paper
Language:	English en_US
Published:	World Bank, Washington, DC 2014
Subjects:	ACCOUNTING AGRICULTURE ARMED CONFLICT ARMED CONFLICTS ASSETS ATTRITION BASE YEAR BATTLE BOUNDARIES BUSINESSES CAPITAL INVESTMENT CIVIL WAR CIVIL WARS COLLECTION OF INFORMATION COMMERCE COMMODITY CONFLICT CONFLICTS CORPORATION COUNTERPARTS CRISES DATA LIMITATIONS DEFLATORS DEMOCRACY DEVALUATION DEVELOPMENT ECONOMICS DEVELOPMENT POLICY DOMESTIC WORKERS ECONOMETRICS ECONOMIC COSTS ECONOMIC DEVELOPMENT ECONOMIC FLUCTUATIONS ECONOMIC GROWTH ECONOMIC OUTLOOK ECONOMIC RECOVERY ECONOMIC RESEARCH ELECTIONS ELECTRICITY EMPLOYMENT EMPLOYMENT GROWTH ENTERPRISE SECTORS ENTERPRISE SURVEYS EQUIPMENT EXPECTED RETURNS EXPORTS FIGHTING FINANCIAL CONSTRAINTS FINANCIAL CRISIS FINANCIAL SERVICES FIRM SIZE FIRMS FIXED COSTS FOREIGN AID FOREIGN INVESTMENT FOREIGN INVESTMENTS FOREIGN LABOR FOREIGN WORKERS FOREIGNER FOREIGNERS FUTURE RESEARCH GDP GDP PER CAPITA HUMAN CAPITAL IMF IMPERFECT SUBSTITUTES INCOME INFORMATION NETWORKS INTERNATIONAL AFFAIRS INTERNATIONAL BANK INTERNATIONAL COMMUNITY INTERNATIONAL DEVELOPMENT INTERNATIONAL ECONOMICS INTERNATIONAL MARKETS INTERNATIONAL NEGOTIATIONS JOB CREATION LABOR ADJUSTMENT COSTS LABOR PRODUCTIVITY LABOR SUPPLY LABOR VALUE MACROECONOMIC SHOCKS MANUFACTURING MANUFACTURING ESTABLISHMENTS MARGINAL COST MARGINAL PRODUCT MARKET RESEARCH MARKET SHARES MASSACRES MATERIAL MISSING DATA MISSING VALUES NATIONALISM NATIONS OBSERVERS OPEN ACCESS OPERATING ENVIRONMENTS OPPORTUNITY COSTS PARTY PEACE PEACE KEEPING PEACE RESEARCH PHYSICAL LOCATION POLITICAL VIOLENCE POTENTIAL OUTPUT PRIVATE INVESTMENT PRIVATE SECTOR PRIVATE SECTOR DEVELOPMENT PRIVATE SECTOR FIRMS PRODUCTION FUNCTION PRODUCTION FUNCTIONS PRODUCTIVITY PRODUCTIVITY GROWTH RADIO REBELS RECONCILIATION RECONSTRUCTION RECONSTRUCTION POLICIES RESULT RESULTS ROADS SHAREHOLDERS SKILLED LABOR SMALL FIRMS SOCIAL COHESION SOLDIERS TACTICS TAX REVENUES TECHNICAL ASSISTANCE TELECOMMUNICATIONS TERRORISM TOTAL FACTOR PRODUCTIVITY TOTAL OUTPUT TRADE LIBERALIZATION TRANSMISSION UNDERDEVELOPMENT UNSKILLED LABOR UNSKILLED WORKERS USES VALUE ADDED VIOLENT CONFLICT WAGE RATES WAGES WAR WORLD DEVELOPMENT
Online Access:	http://documents.worldbank.org/curated/en/2013/10/18347991/civil-conflict-firm-performance-evidence-cote-divoire http://hdl.handle.net/10986/16857

id	okr-10986-16857
recordtype	oai_dc
spelling	okr-10986-168572021-04-23T14:03:32Z Civil Conflict and Firm Performance : Evidence from Cote d'Ivoire Klapper, Leora Richmond, Christine Tran, Trang ACCOUNTING AGRICULTURE ARMED CONFLICT ARMED CONFLICTS ASSETS ATTRITION BASE YEAR BATTLE BOUNDARIES BUSINESSES CAPITAL INVESTMENT CIVIL WAR CIVIL WARS COLLECTION OF INFORMATION COMMERCE COMMODITY CONFLICT CONFLICTS CORPORATION COUNTERPARTS CRISES DATA LIMITATIONS DEFLATORS DEMOCRACY DEVALUATION DEVELOPMENT ECONOMICS DEVELOPMENT POLICY DOMESTIC WORKERS ECONOMETRICS ECONOMIC COSTS ECONOMIC DEVELOPMENT ECONOMIC FLUCTUATIONS ECONOMIC GROWTH ECONOMIC OUTLOOK ECONOMIC RECOVERY ECONOMIC RESEARCH ELECTIONS ELECTRICITY EMPLOYMENT EMPLOYMENT GROWTH ENTERPRISE SECTORS ENTERPRISE SURVEYS EQUIPMENT EXPECTED RETURNS EXPORTS FIGHTING FINANCIAL CONSTRAINTS FINANCIAL CRISIS FINANCIAL SERVICES FIRM SIZE FIRMS FIXED COSTS FOREIGN AID FOREIGN INVESTMENT FOREIGN INVESTMENTS FOREIGN LABOR FOREIGN WORKERS FOREIGNER FOREIGNERS FUTURE RESEARCH GDP GDP PER CAPITA HUMAN CAPITAL IMF IMPERFECT SUBSTITUTES INCOME INFORMATION NETWORKS INTERNATIONAL AFFAIRS INTERNATIONAL BANK INTERNATIONAL COMMUNITY INTERNATIONAL DEVELOPMENT INTERNATIONAL ECONOMICS INTERNATIONAL MARKETS INTERNATIONAL NEGOTIATIONS JOB CREATION LABOR ADJUSTMENT COSTS LABOR PRODUCTIVITY LABOR SUPPLY LABOR VALUE MACROECONOMIC SHOCKS MANUFACTURING MANUFACTURING ESTABLISHMENTS MARGINAL COST MARGINAL PRODUCT MARKET RESEARCH MARKET SHARES MASSACRES MATERIAL MISSING DATA MISSING VALUES NATIONALISM NATIONS OBSERVERS OPEN ACCESS OPERATING ENVIRONMENTS OPPORTUNITY COSTS PARTY PEACE PEACE KEEPING PEACE RESEARCH PHYSICAL LOCATION POLITICAL VIOLENCE POTENTIAL OUTPUT PRIVATE INVESTMENT PRIVATE SECTOR PRIVATE SECTOR DEVELOPMENT PRIVATE SECTOR FIRMS PRODUCTION FUNCTION PRODUCTION FUNCTIONS PRODUCTIVITY PRODUCTIVITY GROWTH RADIO REBELS RECONCILIATION RECONSTRUCTION RECONSTRUCTION POLICIES RESULT RESULTS ROADS SHAREHOLDERS SKILLED LABOR SMALL FIRMS SOCIAL COHESION SOLDIERS TACTICS TAX REVENUES TECHNICAL ASSISTANCE TELECOMMUNICATIONS TERRORISM TOTAL FACTOR PRODUCTIVITY TOTAL OUTPUT TRADE LIBERALIZATION TRANSMISSION UNDERDEVELOPMENT UNSKILLED LABOR UNSKILLED WORKERS USES VALUE ADDED VIOLENT CONFLICT WAGE RATES WAGES WAR WORLD DEVELOPMENT This paper investigates the impact of political instability and civil conflict on firms. It studies the unrest in Cote d'Ivoire that began in 2000, using a census of all registered firms for the years 1998-2003. The analysis uses structural estimates of the production function and exploits spatial variations in conflict intensity to derive the cost of conflict on firms in terms of productivity loss. The results indicate that the conflict led to an average 16-23 percent drop in firm total factor productivity and the decline is 5-10 percentage points larger for firms that are owned by or employing foreigners. These results are consistent with anecdotal evidence of increasing violent attacks and looting of foreigners and their businesses during the conflict. The results suggest increases in operating costs is a possible channel driving this impact. Finally, the paper investigates whether firms responded by hiring fewer foreign workers and finds evidence supporting this hypothesis. 2014-02-04T16:37:28Z 2014-02-04T16:37:28Z 2013-10 http://documents.worldbank.org/curated/en/2013/10/18347991/civil-conflict-firm-performance-evidence-cote-divoire http://hdl.handle.net/10986/16857 English en_US Policy Research Working Paper;No. 6640 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research Africa Cote d'Ivoire
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English en_US
topic	ACCOUNTING AGRICULTURE ARMED CONFLICT ARMED CONFLICTS ASSETS ATTRITION BASE YEAR BATTLE BOUNDARIES BUSINESSES CAPITAL INVESTMENT CIVIL WAR CIVIL WARS COLLECTION OF INFORMATION COMMERCE COMMODITY CONFLICT CONFLICTS CORPORATION COUNTERPARTS CRISES DATA LIMITATIONS DEFLATORS DEMOCRACY DEVALUATION DEVELOPMENT ECONOMICS DEVELOPMENT POLICY DOMESTIC WORKERS ECONOMETRICS ECONOMIC COSTS ECONOMIC DEVELOPMENT ECONOMIC FLUCTUATIONS ECONOMIC GROWTH ECONOMIC OUTLOOK ECONOMIC RECOVERY ECONOMIC RESEARCH ELECTIONS ELECTRICITY EMPLOYMENT EMPLOYMENT GROWTH ENTERPRISE SECTORS ENTERPRISE SURVEYS EQUIPMENT EXPECTED RETURNS EXPORTS FIGHTING FINANCIAL CONSTRAINTS FINANCIAL CRISIS FINANCIAL SERVICES FIRM SIZE FIRMS FIXED COSTS FOREIGN AID FOREIGN INVESTMENT FOREIGN INVESTMENTS FOREIGN LABOR FOREIGN WORKERS FOREIGNER FOREIGNERS FUTURE RESEARCH GDP GDP PER CAPITA HUMAN CAPITAL IMF IMPERFECT SUBSTITUTES INCOME INFORMATION NETWORKS INTERNATIONAL AFFAIRS INTERNATIONAL BANK INTERNATIONAL COMMUNITY INTERNATIONAL DEVELOPMENT INTERNATIONAL ECONOMICS INTERNATIONAL MARKETS INTERNATIONAL NEGOTIATIONS JOB CREATION LABOR ADJUSTMENT COSTS LABOR PRODUCTIVITY LABOR SUPPLY LABOR VALUE MACROECONOMIC SHOCKS MANUFACTURING MANUFACTURING ESTABLISHMENTS MARGINAL COST MARGINAL PRODUCT MARKET RESEARCH MARKET SHARES MASSACRES MATERIAL MISSING DATA MISSING VALUES NATIONALISM NATIONS OBSERVERS OPEN ACCESS OPERATING ENVIRONMENTS OPPORTUNITY COSTS PARTY PEACE PEACE KEEPING PEACE RESEARCH PHYSICAL LOCATION POLITICAL VIOLENCE POTENTIAL OUTPUT PRIVATE INVESTMENT PRIVATE SECTOR PRIVATE SECTOR DEVELOPMENT PRIVATE SECTOR FIRMS PRODUCTION FUNCTION PRODUCTION FUNCTIONS PRODUCTIVITY PRODUCTIVITY GROWTH RADIO REBELS RECONCILIATION RECONSTRUCTION RECONSTRUCTION POLICIES RESULT RESULTS ROADS SHAREHOLDERS SKILLED LABOR SMALL FIRMS SOCIAL COHESION SOLDIERS TACTICS TAX REVENUES TECHNICAL ASSISTANCE TELECOMMUNICATIONS TERRORISM TOTAL FACTOR PRODUCTIVITY TOTAL OUTPUT TRADE LIBERALIZATION TRANSMISSION UNDERDEVELOPMENT UNSKILLED LABOR UNSKILLED WORKERS USES VALUE ADDED VIOLENT CONFLICT WAGE RATES WAGES WAR WORLD DEVELOPMENT
spellingShingle	ACCOUNTING AGRICULTURE ARMED CONFLICT ARMED CONFLICTS ASSETS ATTRITION BASE YEAR BATTLE BOUNDARIES BUSINESSES CAPITAL INVESTMENT CIVIL WAR CIVIL WARS COLLECTION OF INFORMATION COMMERCE COMMODITY CONFLICT CONFLICTS CORPORATION COUNTERPARTS CRISES DATA LIMITATIONS DEFLATORS DEMOCRACY DEVALUATION DEVELOPMENT ECONOMICS DEVELOPMENT POLICY DOMESTIC WORKERS ECONOMETRICS ECONOMIC COSTS ECONOMIC DEVELOPMENT ECONOMIC FLUCTUATIONS ECONOMIC GROWTH ECONOMIC OUTLOOK ECONOMIC RECOVERY ECONOMIC RESEARCH ELECTIONS ELECTRICITY EMPLOYMENT EMPLOYMENT GROWTH ENTERPRISE SECTORS ENTERPRISE SURVEYS EQUIPMENT EXPECTED RETURNS EXPORTS FIGHTING FINANCIAL CONSTRAINTS FINANCIAL CRISIS FINANCIAL SERVICES FIRM SIZE FIRMS FIXED COSTS FOREIGN AID FOREIGN INVESTMENT FOREIGN INVESTMENTS FOREIGN LABOR FOREIGN WORKERS FOREIGNER FOREIGNERS FUTURE RESEARCH GDP GDP PER CAPITA HUMAN CAPITAL IMF IMPERFECT SUBSTITUTES INCOME INFORMATION NETWORKS INTERNATIONAL AFFAIRS INTERNATIONAL BANK INTERNATIONAL COMMUNITY INTERNATIONAL DEVELOPMENT INTERNATIONAL ECONOMICS INTERNATIONAL MARKETS INTERNATIONAL NEGOTIATIONS JOB CREATION LABOR ADJUSTMENT COSTS LABOR PRODUCTIVITY LABOR SUPPLY LABOR VALUE MACROECONOMIC SHOCKS MANUFACTURING MANUFACTURING ESTABLISHMENTS MARGINAL COST MARGINAL PRODUCT MARKET RESEARCH MARKET SHARES MASSACRES MATERIAL MISSING DATA MISSING VALUES NATIONALISM NATIONS OBSERVERS OPEN ACCESS OPERATING ENVIRONMENTS OPPORTUNITY COSTS PARTY PEACE PEACE KEEPING PEACE RESEARCH PHYSICAL LOCATION POLITICAL VIOLENCE POTENTIAL OUTPUT PRIVATE INVESTMENT PRIVATE SECTOR PRIVATE SECTOR DEVELOPMENT PRIVATE SECTOR FIRMS PRODUCTION FUNCTION PRODUCTION FUNCTIONS PRODUCTIVITY PRODUCTIVITY GROWTH RADIO REBELS RECONCILIATION RECONSTRUCTION RECONSTRUCTION POLICIES RESULT RESULTS ROADS SHAREHOLDERS SKILLED LABOR SMALL FIRMS SOCIAL COHESION SOLDIERS TACTICS TAX REVENUES TECHNICAL ASSISTANCE TELECOMMUNICATIONS TERRORISM TOTAL FACTOR PRODUCTIVITY TOTAL OUTPUT TRADE LIBERALIZATION TRANSMISSION UNDERDEVELOPMENT UNSKILLED LABOR UNSKILLED WORKERS USES VALUE ADDED VIOLENT CONFLICT WAGE RATES WAGES WAR WORLD DEVELOPMENT Klapper, Leora Richmond, Christine Tran, Trang Civil Conflict and Firm Performance : Evidence from Cote d'Ivoire
geographic_facet	Africa Cote d'Ivoire
relation	Policy Research Working Paper;No. 6640
description	This paper investigates the impact of political instability and civil conflict on firms. It studies the unrest in Cote d'Ivoire that began in 2000, using a census of all registered firms for the years 1998-2003. The analysis uses structural estimates of the production function and exploits spatial variations in conflict intensity to derive the cost of conflict on firms in terms of productivity loss. The results indicate that the conflict led to an average 16-23 percent drop in firm total factor productivity and the decline is 5-10 percentage points larger for firms that are owned by or employing foreigners. These results are consistent with anecdotal evidence of increasing violent attacks and looting of foreigners and their businesses during the conflict. The results suggest increases in operating costs is a possible channel driving this impact. Finally, the paper investigates whether firms responded by hiring fewer foreign workers and finds evidence supporting this hypothesis.
format	Publications & Research :: Policy Research Working Paper
author	Klapper, Leora Richmond, Christine Tran, Trang
author_facet	Klapper, Leora Richmond, Christine Tran, Trang
author_sort	Klapper, Leora
title	Civil Conflict and Firm Performance : Evidence from Cote d'Ivoire
title_short	Civil Conflict and Firm Performance : Evidence from Cote d'Ivoire
title_full	Civil Conflict and Firm Performance : Evidence from Cote d'Ivoire
title_fullStr	Civil Conflict and Firm Performance : Evidence from Cote d'Ivoire
title_full_unstemmed	Civil Conflict and Firm Performance : Evidence from Cote d'Ivoire
title_sort	civil conflict and firm performance : evidence from cote d'ivoire
publisher	World Bank, Washington, DC
publishDate	2014
url	http://documents.worldbank.org/curated/en/2013/10/18347991/civil-conflict-firm-performance-evidence-cote-divoire http://hdl.handle.net/10986/16857
_version_	1764434714956922880

Civil Conflict and Firm Performance : Evidence from Cote d'Ivoire

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