The economic impact of peacekeeping. Evidence from South Sudan

This paper investigates the effect of the deployment of United Nations Blue Helmets on economic activity in South Sudan with a special focus on agricultural production. Since UN troops are predicted to improve security, in particular, we expect a positive relationship between deployment of UN blue Helmets and cereal production. We test our hypothesis using an original data-set including all the 78 South Sudanese counties over the period 2009–2011. We control for the non-random assignment of UN troops through an Instrumental Variables approach. Our empirical results show that a 10% increase in the size of the troop allows the production of additional 600 tonnes.