Violent conflict has numerous negative effects on private entrepreneurial activity and, as a consequence, on economic development. We show that even when we observe resilience of entrepreneurial activities in countries experiencing conflict (entrepreneurship increases with conflict), this is a sign of regressive structural change: a country moves towards low capital intensive and subsistence activities. However, entrepreneurial resilience may work as a foundation for post conflict reconstruction and economic development.
Ciarli, T.; Kofol, C.; Menon, C.; Di Maio, M.; Langlotz, S.; Salgado, E. Conflict and Private Enterprise Activity in Low-Income Countries. CEPR, London, UK (2015) 3 pp.
Conflict and Private Enterprise Activity in Low-Income Countries