Conflict and Firms’ Performance
This study provides a global analysis of the effect of conflict exposure on firms’ performance, combining geolocalized longitudinal firm-level data and information on political violence events from 91 countries between 2006 and 2019. Higher conflict exposure does not affect firm profits, as it reduces both sales and total costs. Sales decline due to the conflict-induced reduction in the availability of production inputs and the increase in informal competition. Firms react to lower sales by reducing labor costs and expenditure on other production inputs. The effect of conflict is more detrimental for firms in countries with low-quality bureaucracy and that are initially at peace.
| Main Authors: | , , , |
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| Format: | Working Paper biblioteca |
| Language: | English en_US |
| Published: |
Washington, DC: World Bank
2024-09-09
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| Subjects: | FIRM, CONFLICT, POLITICAL VIOLENCE, INTERMEDIATE INPUTS, LABOR MARKETS, MARKET COMPETITION, DECENT WORK AND ECONOMIC GROWTH, SDG 8, PEACE, JUSTICE AND STRONG INSTITUTIONS, SDG 16, |
| Online Access: | http://documents.worldbank.org/curated/en/099152409052416500/IDU175d38ab210335146a41bbcb14f91c0cbda6b https://hdl.handle.net/10986/42132 |
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