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The economic effects of a counterinsurgency policy in India: A synthetic control analysis

Listed author(s):
  • Singhal, Saurabh
  • Nilakantan, Rahul

Using the synthetic control method, we analyze the economic effects of a unique counterinsurgency response to the Naxalite insurgency in India. Of all the states affected by Naxalite violence, only one state, Andhra Pradesh, raised a specially trained and equipped police force in 1989 known as the Greyhounds, dedicated to combating the Naxalite insurgency. Compared to a synthetic control region constructed from states affected by Naxalite violence that did not raise a similar police force, we find that the per capita NSDP of Andhra Pradesh increased significantly over the period 1989–2000. Further, we find that the effects on the manufacturing sector are particularly strong. Placebo tests indicate that these results are credible and various difference-in-difference specifications using state and industry level panel data further corroborate these findings.

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File URL: http://www.sciencedirect.com/science/article/pii/S0176268016301653
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Article provided by Elsevier in its journal European Journal of Political Economy.

Volume (Year): 45 (2016)
Issue (Month): C ()
Pages: 1-17

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Handle: RePEc:eee:poleco:v:45:y:2016:i:c:p:1-17
DOI: 10.1016/j.ejpoleco.2016.08.012
Contact details of provider: Web page: http://www.elsevier.com/locate/inca/505544

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