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

Klapper, Leora ; Richmond, Christine ; Tran, Trang

World Bank, Washington, DC

关键词: ACCOUNTING;    AGRICULTURE;    ARMED CONFLICT;    ARMED CONFLICTS;    ASSETS;   

DOI  :  10.1596/1813-9450-6640
RP-ID  :  WPS6640

学科分类：社会科学、人文和艺术（综合）

来源: World Bank Open Knowledge Repository

【 摘 要 】

This paper investigates the impact ofpolitical instability and civil conflict on firms. Itstudies the unrest in Cote d'Ivoire that began in 2000,using a census of all registered firms for the years1998-2003. The analysis uses structural estimates of theproduction function and exploits spatial variations inconflict intensity to derive the cost of conflict on firmsin terms of productivity loss. The results indicate that theconflict led to an average 16-23 percent drop in firm totalfactor productivity and the decline is 5-10 percentagepoints larger for firms that are owned by or employingforeigners. These results are consistent with anecdotalevidence of increasing violent attacks and looting offoreigners and their businesses during the conflict. Theresults suggest increases in operating costs is a possiblechannel driving this impact. Finally, the paper investigateswhether firms responded by hiring fewer foreign workers andfinds evidence supporting this hypothesis.