Economic Consequences of Wars: Evidence from Landmine Contamination in Mozambique
This paper evaluates the economic returns to improved households access to infrastructure, public services and land in the context of a large landmineclearance program in post-war Mozambique. The International Campaign to Ban Landmines production and use estimates that there are more than 80 billion landmines in the ground in more than 80 countries. Despite the scale of the problem and large investments by OECD countries to clear mines in low income countries, the economic consequences of landmine contamination have been so far unexamined by economists working on the economics of wars, perhaps due to the lack of data thus far. The evaluation uses a unique dataset on landmine contamination intensity covering 126 Mozambican districts to evaluate the causal impact of landmine contamination on income and welfare. The method uses a difference-in-difference estimator to correct for selection in landmine placement. I find large and statistically significant effects of landmine contamination on poverty (in level and depth) and consumption per capita. Hence, the cost-benefit analysis indicates that despite the high cost to clear a mine under reasonable assumptions the program generates a positive return.
|Date of creation:||2006|
|Contact details of provider:|| Postal: Badia Fiesolana, Via dei Roccettini, 9, 50014 San Domenico di Fiesole (FI) Italy|
Web page: http://www.eui.eu/ECO/
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Massimo Guidolin & Eliana La Ferrara, 2007.
"Diamonds Are Forever, Wars Are Not: Is Conflict Bad for Private Firms?,"
American Economic Review,
American Economic Association, vol. 97(5), pages 1978-1993, December.
- Guidolin, Massimo & La Ferrara, Eliana, 2004. "Diamonds are Forever, Wars are Not: Is Conflict Bad for Private Firms?," CEPR Discussion Papers 4668, C.E.P.R. Discussion Papers.
- Massimo Guidolin & Eliana La Ferrara, 2006. "Diamonds are forever, wars are not. Is conflict bad for private firms?," Working Papers 2005-004, Federal Reserve Bank of St. Louis.
- Simler, Kenneth R. & Nhate, Virgulino, 2005. "Poverty, inequality, and geographic targeting," FCND briefs 192, International Food Policy Research Institute (IFPRI).
- Alberto Abadie & Javier Gardeazabal, 2001. "The Economic Costs of Conflict: A Case-Control Study for the Basque Country," NBER Working Papers 8478, National Bureau of Economic Research, Inc.
- Abadie, Alberto & Gardeazabal, Javier, 2001. "The Economic Costs of Conflict: A Case-Control Study for the Basque Country," Working Paper Series rwp01-048, Harvard University, John F. Kennedy School of Government.