This paper uses two unique panel data sets to study the causal effect that armed conflict has over entrepreneurial activity in Colombia. Using a fixed effect estimation methodology at the plant level and controlling for the possible endogeneity of armed conflict through the use of instrumental...

TAs elsewhere, the Colombian private sector has been accused of promoting or profiting from violence in the country. However, the private sector’s role in the armed conflict and the impact of conflict on entrepreneurial activity vary, as reflected by differences in political activism, in...