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Firms amidst the War - David Del Prete (University of Naples and FAO)

Seminars in Economics co-organized by CERPE, CRED and CEREFIM

Catégorie : conférence/cours/séminaire (spécialisé)
Date : 08/10/2019 16:00 - 08/10/2019 17:30
Lieu : Salle C. Joset
Organisateur(s) : Benoît Decerf
Abstract: 
This paper documents the negative effect of conflict on firm performance and identifies the main channel through which this occurs. We combine a novel retrospective panel dataset of Libyan firms and geo localized data on violent events and fatalities during the Second Libyan Civil War. Our results show that firms exposed to higher levels of conflict have worst economic performance, as measured by revenues, labour productivity, and value added. Specifically, conflict exposure negatively affects firm economic activities by reducing both the number of foreign employees and that of imported intermediate inputs, with the latter being the most important mechanism affecting firms revenues. This effect takes place mainly through the disruption of transactions with specific foreign suppliers. Therefore, conflict has potentially long-lasting negative effect on the availability and quality of production inputs and on average productivity.
 
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Contact : Benoît Decerf - benoit.decert@unamur.be
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