Young Development Economists Webinar Series (YoDEV) – Davide Del Prete (University of Naples Parthenope), December 17th at 2:30 p.m. (CET)

Davide Del Prete (University of Naples Parthenope) on “Firms amid the War: Performance, Production Inputs, and Market Competition” (with M. Di Maio and A. Rhaman), jointly organised by the Department of Economics and Management of Università di Pavia, Università degli Studi di Milano – Bicocca e Centro Studi Luca d’Agliano. The webinar will be held on Thursday, 17th December 2020 at 2:30 p.m. (CET) via Zoom. 

Abstract: This paper studies the impact of conflict on firms’ economic performance and explores the underlying mechanisms. We combine a novel retrospective panel dataset of Libyan firms with geo-localized data on conflict events during the Second Libyan Civil War. Our results show that conflict exposure reduces firm revenues. This occurs primarily through a disruption to international supply chain linkages and a reduction in the foreign workforce. Yet, conflict also reduces the number of competitors, increasing for some surviving firms the market shares and mitigating the negative effect of conflict on revenues.