Crime, Self Protection and Business Growth in Cote d'Ivoire
IFPRI-NSSP Program Leader, Kwabena Gyimah-Brempong, is holding a brownbag discussion of a paper he is currently co-authoring, entitled "Crime, Self Protection and Business Growth in Cote d'Ivoire". Please join us to talk more about how crime affects business growth in the long-term. For the full abstract, see below.
Date: March 14, 2013
Time: 2:00PM - 3:30PM
Venue: IFDC Conference Room
No 6/Plot 1413 Ogbagi Street
Off Oro-Ago Crescent
Cadastral Zone II
(Near old CBN building and behind Union Homes)
RSVP: Please email firstname.lastname@example.org by Wednesday, the 13th of March to confirm your attendance
Cote d'Ivoire was considered an island of stability and economic prosperity in a region of stagnation, and political turmoil in the 1960s and 1970s. The situation was reversed in the early 2000, when a decade of political instability associated with poor economic performance led to a civil conflict. The conflict led to surges in crime and violence, which challenged the dynamics of the private sector development. The private sector is indeed the one that can lead this reconstruction by creating jobs and reducing the burden of poverty. We use a recent World Bank enterprise survey dataset and a quasi-experimental method to investigate the impact of crime and the provision of self-protection on businesses activity in Cote d'Ivoire. We find a mixed effect of the private provision of security: self-protection increases the profitability of firms while hampering their level of investment. The results imply that while businesses may be able to decrease the harmful effects of crime in the short run through self-protection, they cannot overcome the negative impacts of crime in the long run.