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Naxalite Insurgency and the Economic Benefits of a Unique Robust Security Response

Author

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  • Saurabh Singhal

    () (University of Southern California)

  • Rahul Nilakantan

    (Indian Institute of Management Indore)

Abstract

Using the synthetic control method of analysis, we provide the first measurements of the direct economic benefits of a unique robust security response to an insurgency. Of all the states affected by Naxalite violence in India, only one state i.e. Andhra Pradesh raised a specially trained and equipped police force in 1989 known as the Greyhounds, dedicated mainly to combating the Naxalite insurgency. Compared to a synthetic control region constructed from states affected by Naxalite violence that did not raise a specially trained anti-Naxalite police force, we find that Andhra Pradesh gained on average 16.11% of its per capita NSDP over the period 1989 to 2000. The effects on the various subsectors of the non-agricultural sector range from approximately 11% to 25%. Placebo tests indicate that all results are significant. Standard difference-in-difference specifications at the state and industry level further corroborate these findings.

Suggested Citation

  • Saurabh Singhal & Rahul Nilakantan, 2012. "Naxalite Insurgency and the Economic Benefits of a Unique Robust Security Response," HiCN Working Papers 127, Households in Conflict Network.
  • Handle: RePEc:hic:wpaper:127
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    Cited by:

    1. Sofia Amaral & Siddhartha Bandyopadhyay & Rudra Sensarma, 2014. "Determinants Of Crime Across Conflict And Non-Conflict States In India," Working papers 146, Indian Institute of Management Kozhikode.
    2. Jean-Paul Azam & Kartika Bhatia, 2017. "Provoking insurgency in a federal state: theory and application to India," Public Choice, Springer, vol. 170(3), pages 183-210, March.
    3. Ho Fai Chan & Bruno S. Frey & Jana Gallus & Benno Torgler, 2013. "Does the John Bates Clark Medal boost subsequent productivity and citation success?," ECON - Working Papers 111, Department of Economics - University of Zurich.
    4. Fırat Bilgel & Burhan Can Karahasan, 2016. "Thirty Years of Conflict and Economic Growth in Turkey: A Synthetic Control Approach," LEQS – LSE 'Europe in Question' Discussion Paper Series 112, European Institute, LSE.
    5. Chan, Ho Fai & Frey, Bruno S. & Gallus, Jana & Torgler, Benno, 2014. "Academic honors and performance," Labour Economics, Elsevier, vol. 31(C), pages 188-204.
    6. 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.
    7. Kaisa Alavuotunki, 2015. "General budget support, health expenditures, and neonatal mortality rate," WIDER Working Paper Series 108, World Institute for Development Economic Research (UNU-WIDER).
    8. Oliver Vanden Eynde, 2015. "Mining Royalties and Incentives for Security Operations: Evidence from India's Red Corridor," PSE Working Papers halshs-01245496, HAL.
    9. Oliver Vanden Eynde, 2015. "Targets of violence: evidence from India's Naxalite conflict," PSE Working Papers halshs-01202689, HAL.

    More about this item

    Keywords

    Counterinsurgency; Conflict; Naxalite insurgency;

    JEL classification:

    • H56 - Public Economics - - National Government Expenditures and Related Policies - - - National Security and War
    • D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances; Revolutions
    • F52 - International Economics - - International Relations, National Security, and International Political Economy - - - National Security; Economic Nationalism

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