Abstract

We analyse rural household livelihood and child school enrolment decisions in the post-conflict setting of the Chittagong Hill Tracts (CHT) region of Bangladesh. What makes this paper innovative is the use of current subjective perceptions regarding the possibility of violence in the future and past actual experiences of violence in explaining household economic decision-making. Preferences are endogenous in line with behavioural economics. Regression results show that heightened subjective perceptions of future violence and past actual experiences of conflict influence current consumption and child enrolment and could encourage risky mixed crop cultivation. The trauma emanating from past experiences combined with current high perceptions of risk of violence may induce bolder and riskier behaviour in line with prospect theories of risk. Furthermore, a postconflict household-level Phoenix or economic revival factor may be in operation, based partially on greater within-group trust.

Additional Metadata
Keywords Livelihood, Bangladesh, Poverty reduction, Perceptions of violence · Post-conflict reconstruction · Risk · Livelihood, decision-making
Publisher Springer
ISBN 978-981-287-419-1
Persistent URL dx.doi.org/10.1007/978-981-287-420-7, hdl.handle.net/1765/77934
Series ISS Staff Group 1: Economics of Sustainable Development
Note Published in: E. Maasoumi et al. (Eds), Poverty Reduction Policies and Practices in Developing Asia, Economic Studies in Inequality, Social Exclusion and Well-being., Springer, 2015, pp. 145-162. The book is published with open access at SpringerLink.com. Open Access This book is distributed under the terms of the Creative Commons Attribution-Noncommercial 3.0 IGO (CC BY-NC 3.0 IGO) License which permits any noncommercial use, distribution, and reproduction in any medium, provided ADB and the original author(s) and source are credited.The book is published with open access at SpringerLink.com. Open Access This book is distributed under the terms of the Creative Commons Attribution-Noncommercial 3.0 IGO (CC BY-NC 3.0 IGO) License which permits any noncommercial use, distribution, and reproduction in any medium, provided ADB and the original author(s) and source are credited.
Citation
Badiuzzaman, M, & Murshed, S.M. (2015). Conflict and Livelihood Decisions in the Chittagong Hill Tracts of Bangladesh. In Poverty Reduction Policies and Practices in Developing Asia, Economic Studies in Inequality, Social Exclusion and Well-being.. Springer. doi:10.1007/978-981-287-420-7