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Entrepreneurial Activity and Civil War in Colombia: Exploring the Mutual Determinants between Armed Conflict and the Private Sector

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  • Rettberg, Angelika
  • Leiteritz, Ralf
  • Nasi, Carlo
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    Abstract

    TAs elsewhere, the Colombian private sector has been accused of promoting or profiting from violence in the country. However, the private sector’s role in the armed conflict and the impact of conflict on entrepreneurial activity vary, as reflected by differences in political activism, in peacebuilding strategies and in costs endured according to company size, sector, and region of operations. At the same time, accounts of regional variation in conflict intensity suggest that an understanding of the Colombian confrontation requires a subnational approach. This paper explores whether and how differences in regional armed armed conflict can be attributed to differences in entrepreneurial make-up and activity associated with five natural resources, produced in different regions (oil, coffee, bananas, emeralds, and flowers). This paper suggests that company-specific traits, institutions of production, and the nature of international markets have a significant impact on the link between entrepreneurial activity and armed conflict in Colombian regions.

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    File URL: http://www.wider.unu.edu/stc/repec/pdfs/wp2010/wp2010-06.pdf
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    Bibliographic Info

    Paper provided by World Institute for Development Economic Research (UNU-WIDER) in its series Working Paper Series with number UNU-WIDER Working Paper WP2010/06.

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    Length: 19 pages
    Date of creation: 2010
    Date of revision:
    Handle: RePEc:unu:wpaper:wp2010-06

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    Keywords: Colombia; armed conflict; entrepreneurship; private sector; natural resources; multinational companies;

    This paper has been announced in the following NEP Reports:

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    1. Oeindrila Dube & Juan Fernando Vargas, 2006. "Resource curse in reverse: The coffee crisis and armed conflict in Colombia," DOCUMENTOS CEDE 003460, UNIVERSIDAD DE LOS ANDES-CEDE.
    2. Paul Collier & Anke Hoeffler, 2004. "Greed and Grievance in Civil War," Development and Comp Systems 0409007, EconWPA.
    3. Jorge Restrepo, Michael Spagat and Juan Vargas, 2003. "The Dynamics of the Colombian Civil Conflict: A New Data Set," Royal Holloway, University of London: Discussion Papers in Economics 03/12, Department of Economics, Royal Holloway University of London, revised Dec 2003.
    4. Ana María Ibáñez, 2009. "Forced displacement in Colombia: magnitude and causes," Economics of Peace and Security Journal, Economists for Peace and Security (UK), vol. 4(1), pages 48-54, January.
    5. Ross, Michael L., 2004. "How Do Natural Resources Influence Civil War? Evidence from Thirteen Cases," International Organization, Cambridge University Press, vol. 58(01), pages 35-67, February.
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