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Trust, violence, and coca

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  • Rubio-Ramos, Melissa

Abstract

How does violence affect social capital? I argue that its impact depends on two factors: (i) the ability to identify the perpetrating group, and (ii) the intensity of the violence. These factors help to reconcile the seemingly contradictory effects of violence on social capital presented in the literature. I study this question in the context of Colombia by exploiting changes in violence attributed to cross-border shocks on coca markets in neighboring countries interacted with a novel index of suitability for coca cultivation. This index uses satellite data from ecological conditions for growing coca. I document that violence has a negative effect on social capital measures such as trust, participation in community organizations, and cooperation. Notably, this effect is stronger when it is not possible to identify the enemy. The results are robust to a large number of controls that account for potential confounders. In particular, I show evidence that this effect is not related to the presence of drug cartels in Colombia during the Escobar and Cali era.

Suggested Citation

  • Rubio-Ramos, Melissa, 2024. "Trust, violence, and coca," Journal of Development Economics, Elsevier, vol. 167(C).
    • Handle: RePEc:eee:deveco:v:167:y:2024:i:c:s0304387823001724
    DOI: 10.1016/j.jdeveco.2023.103216
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    Keywords

    Causal effects of violence; Social capital; Coca production; Instrumental variables; Colombia;
    All these keywords.

    JEL classification:

    • C36 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Instrumental Variables (IV) Estimation
    • D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances; Revolutions
    • N46 - Economic History - - Government, War, Law, International Relations, and Regulation - - - Latin America; Caribbean
    • O54 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Latin America; Caribbean
    • Z10 - Other Special Topics - - Cultural Economics - - - General

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