The implementation of the Plan Colombia is thought to have had significant violence-related spillovers in Ecuador’s bordering provinces with Colombia. We investigate whetherthe Plan Colombia lead to an increase in violence, measured by homicide rates, in suchprovinces. Using a difference in difference approach we do not find any evidence of a crime-increasing effect. As a next step, we evaluate the impact of migration on the level of homicidesin Ecuador. The instrumental variable results, based on the intensity of the Plan Colombia,show a significant, although small, crime-reducing effect.
|Name||Bath Economics Research Working Papers|