Citation

Singh P. J. Conflict Resolut. 2013; 57(1): 143-168.

Affiliation

Amherst College, 305 Converse Hall, AC# 2201, Amherst, MA 01002, USA. Email: psingh@amherst.edu

Copyright

(Copyright © 2013, SAGE Publishing)

DOI

10.1177/0022002712464850

PMID

unavailable

Abstract

This article provides evidence for a particular channel through which sustained terrorism in rural areas may affect growth in developing countries. Using micro-level data from agricultural surveys during the period of insurgency in Punjab (India), I find significant negative effects of terrorism on the level of investment in long-term agricultural technology, but effects are small and insignificant for short-term investment. The presence of a major terrorist incident in a district in a year reduces long-term fixed investment by around 17 percent after controlling for district fixed-effects, time trends, district trends, and other farm-level controls. These negative effects are greater for richer farmers and those living in bordering districts. This results in a farmer losing close to 4 percent of his income annually because of the insurgency.

Language: en