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Civil War, Social Capital and Market Development: Experimental and Survey Evidence on the Negative Consequences of Violence

Author

Listed:
  • Alessandra Cassar

    (University of San Francisco)

  • Pauline Grosjean

    () (School of Economics, The University of New South Wales)

  • Sam Whitt

    (U.S. Department of State)

Abstract

Recent studies have reported surprising increases in pro-social behavior following exposure to conflict. However, our research provides cautionary evidence of some important detrimental effects of conflict hidden within an overall trend toward increasing certain pro-social preferences. We draw our inferences from experimental and survey evidence we collected from a random sample in post-war Tajikistan. More than a decade after the civil war, which was characterized by insurgency and community infighting, exposure to conflict has opened a significant gap between norms people apply to others in their local communities compared to distant others. Our results show how conflict exposure undermines trust and fairness within local communities, decreases the willingness to engage in impersonal exchange, and reinforces kinship-based norms of morality. The robustness of the results to the use of pre-war controls, village fixed effects and alternative samples suggests that selection into victimization is unlikely to be the factor driving the results.

Suggested Citation

  • Alessandra Cassar & Pauline Grosjean & Sam Whitt, 2011. "Civil War, Social Capital and Market Development: Experimental and Survey Evidence on the Negative Consequences of Violence," Discussion Papers 2011-14, School of Economics, The University of New South Wales.
  • Handle: RePEc:swe:wpaper:2011-14
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    File URL: http://research.economics.unsw.edu.au/RePEc/papers/2011-14.pdf
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    References listed on IDEAS

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    1. Andrea Ichino & Giovanni Maggi, 2000. "Work Environment and Individual Background: Explaining Regional Shirking Differentials in a Large Italian Firm," The Quarterly Journal of Economics, Oxford University Press, vol. 115(3), pages 1057-1090.
    2. Juan Camilo Cardenas & Jeffrey Carpenter, 2008. "Behavioural Development Economics: Lessons from Field Labs in the Developing World," Journal of Development Studies, Taylor & Francis Journals, vol. 44(3), pages 311-338.
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    Cited by:

    1. Sangnier, Marc & Zylberberg, Yanos, 2017. "Protests and trust in the state: Evidence from African countries," Journal of Public Economics, Elsevier, vol. 152(C), pages 55-67.
    2. Patricia Justino, 2012. "Shared Societies and Armed Conflict: Costs, Inequality and the Benefits of Peace," HiCN Working Papers 125, Households in Conflict Network.
    3. Juan M. Gallego & Mariapia Mendola, 2013. "Labour Migration and Social Networks Participation in Southern Mozambique," Economica, London School of Economics and Political Science, vol. 80(320), pages 721-759, October.
    4. Olga Shemyakina & Anke Plagnol, 2013. "Subjective Well-Being and Armed Conflict: Evidence from Bosnia-Herzegovina," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 113(3), pages 1129-1152, September.
    5. Alessandra Cassar & Pauline Grosjean & Sam Whitt, 2011. "Social Cooperation and the Problem of the Conflict Gap: Survey and Experimental Evidence from Post-War Tajikistan," Discussion Papers 2011-15, School of Economics, The University of New South Wales.
    6. Olga Shemyakina, 2015. "Exploring the Impact of Conflict Exposure during Formative Years on Labour Market Outcomes in Tajikistan," Journal of Development Studies, Taylor & Francis Journals, vol. 51(4), pages 422-446, April.

    More about this item

    Keywords

    Civil war; trust game; dictator game; market institutions; experimental methods; Central Asia;

    JEL classification:

    • C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments
    • D03 - Microeconomics - - General - - - Behavioral Microeconomics: Underlying Principles
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East
    • P30 - Economic Systems - - Socialist Institutions and Their Transitions - - - General

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