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Violence, Political Instability, and International Trade: Evidence from Kenya’s Cut Flower Sector

Andrew Muhammad (), Anna D'Souza () and William A. Amponsah

No 118374, 2011 Annual Meeting, July 24-26, 2011, Pittsburgh, Pennsylvania from Agricultural and Applied Economics Association

Abstract: We assess whether and how violence and political instability affect trade between developed and developing countries considering the special case of EU imports of Kenyan roses after the 2007/08 post-election violence and political instability in Kenya. Using the Rotterdam model to estimate EU demand for roses from Kenya and other global competitors, we find evidence of a structural change in the import growth rate for Kenya, approximately equivalent to an 18.6% tariff. These results highlight the importance of non-tariff barriers to trade and contribute to the growing literature on the role of insecurity and instability in hindering international trade.

Keywords: Demand and Price Analysis; International Development; International Relations/Trade; Political Economy (search for similar items in EconPapers)
Pages: 27
Date: 2011-10
New Economics Papers: this item is included in nep-afr and nep-pol
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Persistent link: https://EconPapers.repec.org/RePEc:ags:aaea11:118374

DOI: 10.22004/ag.econ.118374

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