How does warfare affect firms' productivity?

Warfare afflicts millions and creates unparalleled operational challenges in the developing world. With data from war‐torn 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 customer input.

• 저널Production and Operations Management · 31(5) · 1940–1962
• 토픽Defense, Military, and Policy Studies · Economics and Econometrics
• DOI10.1111/poms.13658
• 저자Andres F. Jola‐Sanchez