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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Autores principales: Galdo Virgilio, Acevedo Gladys Lopez, Rama Martin
Formato: article
Lenguaje:EN
Publicado: Sciendo 2021
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d74
e21
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Acceso en línea:https://doaj.org/article/d1e308a037ed4b31b4584828956db618
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spelling 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)
institution DOAJ
collection DOAJ
language EN
topic 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
spellingShingle 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
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