The development push of refugees:evidence from Tanzania

Maystadt, Jean-Francois and Duranton, Gilles (2014) The development push of refugees:evidence from Tanzania. Working Paper. Lancaster University, Department of Economics, Lancaster.

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We exploit a 1991–2010 Tanzanian household panel to assess the effects of the temporary refugee inflows originating from Burundi (1993) and Rwanda (1994). We find that the refugee presence has had a persistent and positive impact on the welfare of the local population. We investigate the possible channels of transmission, underscoring the importance of a decrease in transport costs as a key driver of this persistent change in welfare. We interpret these findings as the ability of a temporary shock to induce a persistent shift in the equilibrium through subsequent investments rather than a switch to a new equilibrium in a multiple-equilibrium setting.

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13 Oct 2014 13:16
Last Modified:
22 Aug 2022 23:33