IDEAS home Printed from https://ideas.repec.org/a/sae/jocore/v57y2013i1p143-168.html
   My bibliography  Save this article

Impact of Terrorism on Investment Decisions of Farmers

Author

Listed:
  • Prakarsh Singh

Abstract

This article provides evidence for a particular channel through which sustained terrorism in rural areas may affect growth in developing countries. Using micro-level data from agricultural surveys during the period of insurgency in Punjab (India), I find significant negative effects of terrorism on the level of investment in long-term agricultural technology, but effects are small and insignificant for short-term investment. The presence of a major terrorist incident in a district in a year reduces long-term fixed investment by around 17 percent after controlling for district fixed-effects, time trends, district trends, and other farm-level controls. These negative effects are greater for richer farmers and those living in bordering districts. This results in a farmer losing close to 4 percent of his income annually because of the insurgency.

Suggested Citation

  • Prakarsh Singh, 2013. "Impact of Terrorism on Investment Decisions of Farmers," Journal of Conflict Resolution, Peace Science Society (International), vol. 57(1), pages 143-168, February.
  • Handle: RePEc:sae:jocore:v:57:y:2013:i:1:p:143-168
    as

    Download full text from publisher

    File URL: http://jcr.sagepub.com/content/57/1/143.abstract
    Download Restriction: no

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Friedrich Schneider & Tilman Brück & Daniel Meierrieks, 2010. "The Economics of Terrorism and Counter-Terrorism: A Survey (Part I)," Discussion Papers of DIW Berlin 1049, DIW Berlin, German Institute for Economic Research.
    2. Singhal, Saurabh & Nilakantan, Rahul, 2016. "The economic effects of a counterinsurgency policy in India: A synthetic control analysis," European Journal of Political Economy, Elsevier, vol. 45(C), pages 1-17.
    3. Nillesen, Eleonora, 2016. "Empty cups? Assessing the impact of civil war violence on coffee farming in Burundi," African Journal of Agricultural and Resource Economics, African Association of Agricultural Economists, vol. 11(1), March.
    4. Haider, Murtaza & Anwar, Amar, 2014. "Impact of terrorism on FDI flows to Pakistan," MPRA Paper 57165, University Library of Munich, Germany.
    5. Thiemo Fetzer, 2014. "Can Workfare Programs Moderate Violence? Evidence from India," STICERD - Economic Organisation and Public Policy Discussion Papers Series 053, Suntory and Toyota International Centres for Economics and Related Disciplines, LSE.
    6. Singh, Prakarsh & Shemyakina, Olga N., 2016. "Gender-differential effects of terrorism on education: The case of the 1981–1993 Punjab insurgency," Economics of Education Review, Elsevier, vol. 54(C), pages 185-210.
    7. Thiemo Fetzer, 2014. "Can Workfare Programs Moderate Violence? Evidence from India," STICERD - Economic Organisation and Public Policy Discussion Papers Series 53, Suntory and Toyota International Centres for Economics and Related Disciplines, LSE.
    8. Adelaja, Adesoji, 2016. "Agriculture, Inclusive Growth and National Stability:," 2016 Annual Meeting, July 31-August 2, 2016, Boston, Massachusetts 235909, Agricultural and Applied Economics Association.
    9. Sameeksah Desai & Zoltán J. Ács & Utz Weitzel, 2015. "A Model of Destructive Entrepreneurship: Insight for Conflict and Postconflict Recovery," Chapters,in: Global Entrepreneurship, Institutions and Incentives, chapter 1, pages 3-23 Edward Elgar Publishing.
    10. Adelaja, Adesoji O., 2016. "Agriculture, Inclusive Growth And National Stability:," 2016 Annual Meeting, July 31-August 2, 2016, Boston, Massachusetts 242359, Agricultural and Applied Economics Association.

    More about this item

    Keywords

    terrorism; investment; Punjab;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:jocore:v:57:y:2013:i:1:p:143-168. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (SAGE Publications). General contact details of provider: http://pss.la.psu.edu/ .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.