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Civil Conflict and Firm Recovery: Evidence from Côte d’Ivoire

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  • Florian Léon
  • Ibrahima Dosso

Abstract

This paper examines how firms bounce back after a short, albeit severe, civil conflict. Thanks to a rich firm-level database, we follow surviving enterprises before, during and after the 2011 post-electoral crisis in Côte d'Ivoire. Main findings are summarized as follows. First, recovery was rapid in the first year but imperfect: 3 years after the shock, firms did not reach their pre-crisis level of productivity. Second, we show a wide heterogeneity in recovery across firms according to their initial characteristics (before the crisis). Young and local firms are more able to rebound after the crisis. In addition, credit-constrained firms are less resilient, highlighting the importance of access to credit in post-crisis periods. Finally, the recovery is quicker for labor-intensive firms; but firms relying more on skilled workers are less likely to rebound.

Suggested Citation

  • Florian Léon & Ibrahima Dosso, 2022. "Civil Conflict and Firm Recovery: Evidence from Côte d’Ivoire," Journal of Development Studies, Taylor & Francis Journals, vol. 58(11), pages 2263-2289, November.
    • Handle: RePEc:taf:jdevst:v:58:y:2022:i:11:p:2263-2289
    DOI: 10.1080/00220388.2022.2094255
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