Conflict and the composition of economic activity in Afghanistan
Despite informality being the norm in conflict-affected countries, most estimates of the impact of conflict on economic activity rely on formal sector data. Using high-frequency data from Afghanistan, this paper assesses how surges in conflict intensity affect not only the formal sector, but also in...
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oai:doaj.org-article:d1e308a037ed4b31b4584828956db6182021-12-05T14:11:08ZConflict and the composition of economic activity in Afghanistan2520-178610.2478/izajodm-2021-0010https://doaj.org/article/d1e308a037ed4b31b4584828956db6182021-09-01T00:00:00Zhttps://doi.org/10.2478/izajodm-2021-0010https://doaj.org/toc/2520-1786Despite informality being the norm in conflict-affected countries, most estimates of the impact of conflict on economic activity rely on formal sector data. Using high-frequency data from Afghanistan, this paper assesses how surges in conflict intensity affect not only the formal sector, but also informal and illicit activities. Nighttime light provides a proxy for aggregate economic activity, mobile phone traffic by registered firms captures fluctuations in formal sector output, and the land surface devoted to poppy cultivation gives a measure of illicit production. The unit of observation is the district and the period of reference is 2012–2016. The results show that an increase in conflict-related casualties has a strong negative impact on formal economic activity in the following quarter and a positive effect on illicit activity after two quarters. The impact on aggregate economic activity is negative, but more muted.Galdo VirgilioAcevedo Gladys LopezRama MartinSciendoarticleafghanistanconflicteconomic activityd74e21f35i32o17Colonies and colonization. Emigration and immigration. International migrationJV1-9480City population. Including children in cities, immigrationHT201-221ENIZA Journal of Development and Migration, Vol 12, Iss 1, Pp 113-132 (2021) |
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afghanistan conflict economic activity d74 e21 f35 i32 o17 Colonies and colonization. Emigration and immigration. International migration JV1-9480 City population. Including children in cities, immigration HT201-221 |
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afghanistan conflict economic activity d74 e21 f35 i32 o17 Colonies and colonization. Emigration and immigration. International migration JV1-9480 City population. Including children in cities, immigration HT201-221 Galdo Virgilio Acevedo Gladys Lopez Rama Martin Conflict and the composition of economic activity in Afghanistan |
description |
Despite informality being the norm in conflict-affected countries, most estimates of the impact of conflict on economic activity rely on formal sector data. Using high-frequency data from Afghanistan, this paper assesses how surges in conflict intensity affect not only the formal sector, but also informal and illicit activities. Nighttime light provides a proxy for aggregate economic activity, mobile phone traffic by registered firms captures fluctuations in formal sector output, and the land surface devoted to poppy cultivation gives a measure of illicit production. The unit of observation is the district and the period of reference is 2012–2016. The results show that an increase in conflict-related casualties has a strong negative impact on formal economic activity in the following quarter and a positive effect on illicit activity after two quarters. The impact on aggregate economic activity is negative, but more muted. |
format |
article |
author |
Galdo Virgilio Acevedo Gladys Lopez Rama Martin |
author_facet |
Galdo Virgilio Acevedo Gladys Lopez Rama Martin |
author_sort |
Galdo Virgilio |
title |
Conflict and the composition of economic activity in Afghanistan |
title_short |
Conflict and the composition of economic activity in Afghanistan |
title_full |
Conflict and the composition of economic activity in Afghanistan |
title_fullStr |
Conflict and the composition of economic activity in Afghanistan |
title_full_unstemmed |
Conflict and the composition of economic activity in Afghanistan |
title_sort |
conflict and the composition of economic activity in afghanistan |
publisher |
Sciendo |
publishDate |
2021 |
url |
https://doaj.org/article/d1e308a037ed4b31b4584828956db618 |
work_keys_str_mv |
AT galdovirgilio conflictandthecompositionofeconomicactivityinafghanistan AT acevedogladyslopez conflictandthecompositionofeconomicactivityinafghanistan AT ramamartin conflictandthecompositionofeconomicactivityinafghanistan |
_version_ |
1718371388237021184 |