Peace, farm and food: The effect of peace on investment and food consumption decisions

This paper studies how peace driven by the demobilization of a non-state armed group affect household's investment decisions and their welfare in the short run. Starting in 2012, the government of Colombia engaged in a peace process that ended with the demobilization of the country's biggest non-state armed group, FARC. This process had multiple cease fire arrangements in 2013 and 2014 that reduced the exposure to violence in those places that were previously under the control of an armed group. Using the presence of armed groups as a measure of exposure to the war through a difference in difference approach, I find that the FARC's demobilization process led to a more than threefold increase in farm investment in areas previously affected by the group, as farmers moved production from annual to perennial crops. I find no evidence that investment came at the expense of short-term consumption. Finally, I find evidence of substantial positive spillovers in investment to neighboring areas that were not directly affected by the FARC. The results suggest that decreased investment may be an important mechanism through which armed conflict affects economic development.

Name thesis:degree_name

M.S.

Level thesis:degree_level

Thesis

Discipline thesis:degree_discipline

Agricultural & Applied Econ

Grantor

University of Illinois at Urbana-Champaign

Year dc:date

2021

Author dc:creator

• Nino Chaparro, Gustavo Enrique

Contributors dc:contributor

• Christensen, Peter
• Baylis, Katherine
• Crost, Benjamin
• Herrera Almanza, Catalina

• peace, war, investment, food, consumption

Statement dc:rights

• Copyright 2021 Gustavo Nino Chaparro

Language dc:language

en

Handle dc:identifier

http://hdl.handle.net/2142/110523

OAI identifier oai:identifier

oai:www.ideals.illinois.edu:2142/110523