The development push of refugees

Jean-François Maystadt and Gilles Duranton

No 66910685, Working Papers from Lancaster University Management School, Economics Department

Abstract: 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.

Keywords: Refugees; Tanzania; Multiple equilibrium; Roads (search for similar items in EconPapers)
JEL-codes: I32 O18 Q54 (search for similar items in EconPapers)
Date: 2014
New Economics Papers: this item is included in nep-dev and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (12)

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Persistent link: https://EconPapers.repec.org/RePEc:lan:wpaper:66910685

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