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Why Internal Conflict Deteriorates State Capacity? Evidence from Colombian Municipalities

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  • Mauricio C√°rdenas
  • Marcela Eslava
  • Santiago RamÔøΩrez

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 C√°rdenas & Marcela Eslava & Santiago RamÔøΩrez, 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. 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.
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    6. Mauricio C√°rdenas & Marcela Eslava & Santiago RamÔøΩrez, 2013. "Do Modern-Time Wars Make States? Panel Data Evidence," Documentos CEDE 11939, Universidad de los Andes, Facultad de Economía, CEDE.
    7. Blundell, Richard & Bond, Stephen, 1998. "Initial conditions and moment restrictions in dynamic panel data models," Journal of Econometrics, Elsevier, vol. 87(1), pages 115-143, August.
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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 Gonz�lez & Mar�a del Pilar Rodr�guez Fern�ndez, 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.
    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, . "Three essays on conflict and climate effects in Colombia," Economics PhD Theses, Department of Economics, University of Sussex Business School, number 0419, December.
    5. Barrett, Philip, 2022. "The fiscal cost of conflict: Evidence from Afghanistan 2005–2017," World Development, Elsevier, vol. 157(C).

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