Conflict and Entrepreneurial Activity in Afghanistan: Findings from the National Risk Vulnerability Assessment Data
AbstractThe paper examines the relationship between conflict and entrepreneurial activity in Afghanistan, drawing upon a unique data set, the National Risk and Vulnerability Assessment household survey 2005. Afghanistan is severely underdeveloped and poor. Conflict has persisted in vast swathes of the country for decades, so that Afghanistan may be more appropriately described as an in-, rather than post-, conflict country. At the same time, qualitative (and anecdotal) evidence suggests that entrepreneurial activity is ubiquitous, although mainly due to survival strategies rather than a spirit of entrepreneurialism We empirically explore whether conflict affects the likelihood of a household to engage in entrepreneurial activity, proxied by sources of income coming from holding a small business. We control for the household characteristics and those of the environment, such as social capital, access to resources and infrastructure, as well as the presence of a minimal institutional governance system, to isolate the impact of conflict on household entrepreneurial behaviour. We find that the direct negative effect of the conflict on entrepreneurship is very small. The results on the control variables suggest that (i) the generation of entrepreneurship has seen conflict and instability for a whole life,( ii) a small business is a mean of surviving in a situation where any other support is lacking, (iii) it is a viable strategy when the household can cover some of the associated risks, (iv) there is no indirect effect of conflict via institutions and infrastructure, and (v) entrepreneurial activity may substitute for lacking markets and governance institutions. These results call for further and more in-depth research on Afghanistan as an overlooked area of study by the academic and development research community despite representing a priority for internationally supported reconstruction.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by World Institute for Development Economic Research (UNU-WIDER) in its series Working Paper Series with number UNU-WIDER Working Paper WP2010/08.
Length: 57 pages
Date of creation: 2010
Date of revision:
entrepreneurship; conflict; Afghanistan; national risk vulnerability assessment;
This paper has been announced in the following NEP Reports:
- NEP-ALL-2010-02-27 (All new papers)
- NEP-DEV-2010-02-27 (Development)
- NEP-ENT-2010-02-27 (Entrepreneurship)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Simeon Djankov & Yingyi Qian & Gerard Roland & Ekaterina Zhuravskaya, 2005.
"Entrepreneurship in China and Russia Compared,"
w0049, Center for Economic and Financial Research (CEFIR).
- Leeson, Peter T. & Boettke, Peter J., 2009. "Two-tiered entrepreneurship and economic development," International Review of Law and Economics, Elsevier, vol. 29(3), pages 252-259, September.
- Ricardo Hausmann & Dani Rodrik, 2002.
"Economic Development as Self-Discovery,"
NBER Working Papers
8952, National Bureau of Economic Research, Inc.
- Hausmann, Ricardo & Rodrik, Dani, 2002. "Economic Development as Self Discovery," CEPR Discussion Papers 3356, C.E.P.R. Discussion Papers.
- Hausmann, Ricardo & Rodrik, Dani, 2002. "Economic Development as Self-Discovery," Working Paper Series rwp02-023, Harvard University, John F. Kennedy School of Government.
- Gourieroux, Christian & Monfort, Alain & Renault, Eric & Trognon, Alain, 1987. "Generalised residuals," Journal of Econometrics, Elsevier, vol. 34(1-2), pages 5-32.
- Parto,Saeed & Ciarli,Tommaso & Arora,S. ., 2005. "Economic growth, innovation systems, and institutional change: A Trilogy in Five Parts," Research Memoranda 020, Maastricht : MERIT, Maastricht Economic Research Institute on Innovation and Technology.
- Christian Cordes, 2004. "Veblen's "Instinct of Workmanship," its Cognitive Foundations, and Some Implications for Economic Theory," Papers on Economics and Evolution 2004-01, Max Planck Institute of Economics, Evolutionary Economics Group.
- Besley, Timothy, 1995. "Property Rights and Investment Incentives: Theory and Evidence from Ghana," Journal of Political Economy, University of Chicago Press, vol. 103(5), pages 903-37, October.
- Siyan Chen & Norman V. Loayza & Marta Reynal-Querol, 2008.
"The Aftermath of Civil War,"
World Bank Economic Review,
World Bank Group, vol. 22(1), pages 63-85, February.
- Siyan Chen & Norman V. Loayza & Marta Reynal-Querol, 2007. "The aftermath of Civil War," Economics Working Papers 1043, Department of Economics and Business, Universitat Pompeu Fabra.
- Chen, Siyan & Loayza, Norman V. & Reynal-Querol, Marta, 2007. "The aftermath of civil war," Policy Research Working Paper Series 4190, The World Bank.
- Smallbone, David & Welter, Friederike, 2001. " The Distinctiveness of Entrepreneurship in Transition Economies," Small Business Economics, Springer, vol. 16(4), pages 249-62, June.
- Tom Bundervoet, 2006. "Livestock, Activity Choices and Conflict: Evidence from Burundi," HiCN Working Papers 24, Households in Conflict Network.
- Murat Iyigun & Dani Rodrik, 2004.
"On the Efficacy of Reforms: Policy Tinkering, Institutional Change, and Entrepreneurship,"
NBER Working Papers
10455, National Bureau of Economic Research, Inc.
- Iyigun, Murat & Rodrik, Dani, 2004. "On the Efficacy of Reforms: Policy Tinkering, Institutional Change and Entrepreneurship," CEPR Discussion Papers 4399, C.E.P.R. Discussion Papers.
- David B. Audretsch & Max Keilbach, 2006. "Entrepreneurship, Growth and Restructuring," Papers on Entrepreneurship, Growth and Public Policy 2006-13, Max Planck Institute of Economics, Entrepreneurship, Growth and Public Policy Group.
- Zoltan Acs, 2006. "How Is Entrepreneurship Good for Economic Growth?," Innovations: Technology, Governance, Globalization, MIT Press, vol. 1(1), pages 97-107, March.
- Evans, David S & Jovanovic, Boyan, 1989. "An Estimated Model of Entrepreneurial Choice under Liquidity Constraints," Journal of Political Economy, University of Chicago Press, vol. 97(4), pages 808-27, August.
- Tilman Brück, 2004.
"The Welfare Effects of Farm Household Activity Choices in Post-War Mozambique,"
HiCN Working Papers
04, Households in Conflict Network.
- Tilman Brück, 2004. "The Welfare Effects of Farm Household Activity Choices in Post-War Mozambique," Discussion Papers of DIW Berlin 413, DIW Berlin, German Institute for Economic Research.
- William Easterly & Ross Levine, 2002.
"Tropics, Germs, and Crops: How Endowments Influence Economic Development,"
15, Center for Global Development.
- Easterly, William & Levine, Ross, 2003. "Tropics, germs, and crops: how endowments influence economic development," Journal of Monetary Economics, Elsevier, vol. 50(1), pages 3-39, January.
- William Easterly & Ross Levine, 2002. "Tropics, Germs, and Crops: How Endowments Influence Economic Development," NBER Working Papers 9106, National Bureau of Economic Research, Inc.
- Catalina Amuedo-Dorantes & Susan Pozo, 2006. "Migration, Remittances, and Male and Female Employment Patterns," American Economic Review, American Economic Association, vol. 96(2), pages 222-226, May.
- Rafael Gomez & Eric Santor, 2001. "Membership has its privileges: the effect of social capital and neighbourhood characteristics on the earnings of microfinance borrowers," Canadian Journal of Economics, Canadian Economics Association, vol. 34(4), pages 943-966, November.
- Patricia Justino, 2008.
"Poverty and Violent Conflict: A Micro-Level Perspective on the Causes and Duration of Warfare,"
HiCN Working Papers
46, Households in Conflict Network.
- Patricia Justino, 2008. "Poverty and Violent Conflict: A Micro Level Perspective on the Causes and Duration of Warfare," Research Working Papers 6, MICROCON - A Micro Level Analysis of Violent Conflict.
- Mario Cimoli & Giovanni Dosi & Richard R. Nelson & Joseph Stiglitz, 2006. "Institutions and Policies Shaping Industrial Development: An Introductory Note," LEM Papers Series 2006/02, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
- Bruck, Tilman & Naude, Wim & Verwimp, Philip, 2013. "Entrepreneurship and violent conflict in developing countries," Working Paper Series UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
- Stel, Nora, 2012.
"Entrepreneurship and innovation in a hybrid political order: The case of Lebanon,"
MERIT Working Papers
078, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
- Stel, Nora, 2012. "Entrepreneurship and innovation in a hybrid political order: The case of Lebanon," UNU-MERIT Working Paper Series 078, United Nations University, Maastricht Economic and social Research and training centre on Innovation and Technology.
- Gavrilova, Evelina & Bove, Vincenzo, 2013. "Income and Livelihoods in the War in Afghanistan," MPRA Paper 50545, University Library of Munich, Germany.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Bruck Tadesse).
If references are entirely missing, you can add them using this form.