How does warfare affect firms' productivity? Academic Article

abstract

• Warfare afflicts millions and creates unparalleled operational challenges in the developing world. With data from wartorn Colombia, I examine the effects of civil war on firms' total factor productivity (TFP) using propensity score and conflict hotspot models. I find that warfare increases TFP in service firms, such as public administration and defense, by up to 12.68%, whereas it decreases TFP in manufacturing and other nonservice companies by up to 3.64% a year after a violent episode occurs. This effect stems from intellectual capital growth and service firms' ability to create value from customerinput.

authors

• Jola-Sanchez, Andres

published proceedings

• PRODUCTION AND OPERATIONS MANAGEMENT

author list (cited authors)

• Jola-Sanchez, A. F.

citation count

• 2

complete list of authors

• Jola-Sanchez, Andres F

publication date

• May 2022

publisher

• SAGE Publications  Publisher

published in

• PRODUCTION AND OPERATIONS MANAGEMENT  Journal

keywords

• Disaster Management
• Empirical Research
• Productivity
• Service Operations

Digital Object Identifier (DOI)

• 10.1111/poms.13658

start page

• 1940

end page

• 1962

volume

• 31

issue

• 5

URL

• http://dx.doi.org/10.1111/poms.13658

user-defined tag

• 16 Peace, Justice and Strong Institutions