Abstract
The long-run effects of conflict on agricultural production depend crucially on how conflict affects farm investment. We use the Colombian peace agreement to estimate how the reduction of violent conflict affects farmer investment decisions. In areas where the armed group was initially present, the end of conflict led to a more than twofold increase in farm investment, as farmers moved production from annual to perennial crops. We find no evidence that investment came at the expense of short-term consumption, and was likely financed by debt. Our results suggest that decreased investment may be an important mechanism through which armed conflict inhibits agricultural development and points to a potentially large peace dividend.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callMore From: Journal of the Agricultural and Applied Economics Association
Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
