The Human Capital Legacy of a Trade Embargo

Abhishek Chakravarty, Matthias Parey and Greg Wright ()

2017 Papers from Job Market Papers

Abstract: We estimate the effects of in-utero exposure to a trade embargo on survival and human capital in an import-dependent developing country. Using a sharp regression discontinuity design, we show that a nearly comprehensive embargo imposed by India on Nepal in 1989 led to a close to 30 percent decrease in reported live births the month after it began. Adult survivors of exposure have more education and earn 30% higher monthly income compared to unexposed cohorts. The regional variation in post-embargo income is consistent with a model that combines internal and external trade costs with non-homothetic preferences.

JEL-codes: I15 O11 O15 (search for similar items in EconPapers)
Date: 2017-10-24
New Economics Papers: this item is included in nep-hrm
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https://ideas.repec.org/jmp/2017/pch906.pdf

Related works:
Journal Article: The Human Capital Legacy of a Trade Embargo (2021)
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Persistent link: https://EconPapers.repec.org/RePEc:jmp:jm2017:pch906

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