Making Do With What You Have: Conflict, Input Misallocation and Firm Performance
研究冲突如何扭曲生产投入市场的运作与可及性,导致企业间投入错配。以第二次起义期间的巴勒斯坦为例,发现冲突促使企业用国产材料替代进口,这一机制解释了高冲突地区企业产出价值下降的70%以上。
This article investigates whether conflict induces distortions in the functioning and accessibility of markets for production inputs and in their allocation among firms. We study firm operations and outcomes in the context of Palestine during the Second Intifada. We analyse input usage over time across districts experiencing differential changes in conflict intensity. Conflict induces firms to substitute domestically produced materials for imported ones. Counterfactual analyses show that this mechanism can account for more than 70% of the fall in the output value of firms in high conflict districts.