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Why Internal Conflict Deteriorates State Capacity? Evidence from Colombian Municipalities

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  • Mauricio Cárdenas
  • Marcela Eslava
  • Santiago Ramírez

Abstract

Previous work has documented a negative correlation between internal conflict and state capacity. We attempt to shed light on mechanisms that underlie this relationship, using data for Colombian municipalities. We rely on identifying heterogeneous effects of different types of violent events on state capacity, taking advantage of variability across municipalities in the prevalence of specific manifestations of conflict and their intensity. Our findings suggest that events making civilians feel targeted affect the state’s capacity to collect taxes, while those reflecting a stronger military capacity of illegal armies, in particular their large-scale attacks, affect the state’s capacity to provide public goods.

Suggested Citation

  • Mauricio Cárdenas & Marcela Eslava & Santiago Ramírez, 2013. "Why Internal Conflict Deteriorates State Capacity? Evidence from Colombian Municipalities," Documentos CEDE 11940, Universidad de los Andes, Facultad de Economía, CEDE.
    • Handle: RePEc:col:000089:011940
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    References listed on IDEAS

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    1. Timothy Besley & Torsten Persson, 2009. "The Origins of State Capacity: Property Rights, Taxation, and Politics," American Economic Review, American Economic Association, vol. 99(4), pages 1218-1244, September.
    2. Timothy Besley & Torsten Persson, 2008. "Wars and State Capacity," Journal of the European Economic Association, MIT Press, vol. 6(2-3), pages 522-530, 04-05.
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    5. Christopher Blattman & Edward Miguel, 2010. "Civil War," Journal of Economic Literature, American Economic Association, vol. 48(1), pages 3-57, March.
    6. Mauricio Cárdenas & Marcela Eslava & Santiago Ramírez, 2013. "Do Modern-Time Wars Make States? Panel Data Evidence," Documentos CEDE 11939, Universidad de los Andes, Facultad de Economía, CEDE.
    7. Drazen, Allan & Eslava, Marcela, 2010. "Electoral manipulation via voter-friendly spending: Theory and evidence," Journal of Development Economics, Elsevier, vol. 92(1), pages 39-52, May.
    8. Christopher Blattman & Edward Miguel, 2009. "Civil War: A Review of 50 Years of Research," Working Papers 166, Center for Global Development.
    9. Manuel Arellano & Stephen Bond, 1991. "Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 58(2), pages 277-297.
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    Cited by:

    1. Diana Ricciulli-Marín, 2020. "The Fiscal Cost of Conflict: Evidence from La Violencia in Colombia," Cuadernos de Historia Económica 53, Banco de la Republica de Colombia.
    2. Jorge Alvis Arrieta & Cristina Hidalgo González & María del Pilar Rodríguez Fernández, 2017. "Conflicto, posconflicto y capacidades de los gobiernos municipales en Colombia, 2002 - 2012," Revista Economía y Región, Universidad Tecnológica de Bolívar, vol. 11(2), pages 249-285, December.
    3. Diana Ricciulli, 2020. "The Fiscal Cost of Conflict: Evidence from La Violencia in Colombia," Documentos CEDE 18537, Universidad de los Andes, Facultad de Economía, CEDE.
    4. Rafael Isidro Parra-Peña Somoza, 2019. "Three essays on conflict and climate effects in Colombia," Economics PhD Theses 0419, Department of Economics, University of Sussex Business School.
    5. Barrett, Philip, 2022. "The fiscal cost of conflict: Evidence from Afghanistan 2005–2017," World Development, Elsevier, vol. 157(C).

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    Keywords

    State capacity; state capacity at the local level; internal conflict; Colombia;
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