Firm Investment Decisions in the Post-Conflict Context

41 Pages Posted: 23 Aug 2014

Date Written: November 8, 2013

Abstract

Civil conflict disrupts the incentive for firms to make productive investments. This paper studies the determinants of profit reinvestment for firms in post-conflict transition economies. Results indicate that while access to finance is an important determinant of reinvestment in general, access to finance is not as important in the post-civil war context. However, property rights protections, in particular institutions of contract enforcement, are a more important determinant of profit reinvestment for firms operating in the post-conflict environment than for firms in general. Context specific obstacles to investment imply unique policy responses to facilitate post-conflict recovery.

Keywords: Post-Civil War Recovery, Civil Conflict, Reinvestment, Property Rights, Judicial Institutions

JEL Classification: P14, P26, P37, O16

Suggested Citation

O'Reilly, Colin, Firm Investment Decisions in the Post-Conflict Context (November 8, 2013). Available at SSRN: https://ssrn.com/abstract=2484629 or http://dx.doi.org/10.2139/ssrn.2484629

Colin O'Reilly (Contact Author)

Creighton University ( email )

2500 California St.
Omaha, NE 68178
United States

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