Naxalite Insurgency and the Economic Benefits of a Unique Robust Security Response
University of Southern California - Department of Economics; affiliation not provided to SSRN
Indian Institute of Management Indore
September 22, 2012
Using the synthetic control method of analysis, we provide the first measurements of the direct economic benefits of a unique robust security response to an insurgency. Of all the states affected by Naxalite violence in India, only one state i.e. Andhra Pradesh raised a specially trained and equipped police force in 1989 known as the Greyhounds, dedicated mainly to combating the Naxalite insurgency. Compared to a synthetic control region constructed from states affected by Naxalite violence that did not raise a specially trained anti-Naxalite police force, we find that Andhra Pradesh gained on average 16.11% of its per capita NSDP over the period 1989 to 2000. The effects on the various subsectors of the non-agricultural sector range from approximately 11% to 25%. Placebo tests indicate that all results are significant. Standard difference-in-difference specifications at the state and industry level further corroborate these findings.
Number of Pages in PDF File: 59
Keywords: Counterinsurgency, conflict, Naxalite insurgency
JEL Classification: H56, D74, F52,working papers series
Date posted: August 10, 2011 ; Last revised: September 23, 2012
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