Temporary trade shocks and regional development: evidence from the closure of Abidjan port

Forhad Shilpi, M. Shahe Emran, Brian Blankespoor and Harold Coulombe

Journal of Economic Geography, 2024, vol. 24, issue 2, 333-352

Abstract: Can temporary trade restrictions reshape regional development? To analyze this, we exploit the Cote d’Ivoire civil war that disrupted access to Abidjan port for neighboring land-locked countries: Mali and Burkina Faso. Estimates from a difference-in-difference design suggest negative effects on economic activity and a reverse structural change in the treatment communes. We find evidence of persistence through irreversible investment in built-up areas and divergence in the growth of nightlights. Treatment communes at the intermediate distance from the nearest city experienced stronger adverse impacts, driven partly by a relocation to the communes close to other ports.

Keywords: temporary trade restrictions; regional development; structural change in employment; spatial reallocation; persistence (search for similar items in EconPapers)
JEL-codes: F15 F16 O24 O55 (search for similar items in EconPapers)
Date: 2024
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