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

  • Saurabh Singhal


    (University of Southern California)

  • Rahul Nilakantan

    (Indian Institute of Management Indore)

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.

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Paper provided by Households in Conflict Network in its series HiCN Working Papers with number 127.

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Length: 59 pages
Date of creation: Oct 2012
Date of revision:
Handle: RePEc:hic:wpaper:127
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