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Refugee-Host Proximity and Market Creation in Uganda

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  • Marco d’Errico
  • Rama Dasi Mariani
  • Rebecca Pietrelli
  • Furio Camillo Rosati

Abstract

Many refugees remain for long time in host countries and to assess their impact on the welfare of local communities is essential for policy design. We focus on Uganda, a country that hosts the largest number of refugees in SSA. We analyse whether and to what extent the proximity to refugees increases the welfare and the level of economic activity of hosting-community households by generating incentives for economic exchanges. To measure the potential of interaction we use the distance between hosting-community and refugee households and we test the robustness of our results by implementing different approaches. We conclude that, beyond the possible effects due to the benefits provided by the agencies caring for refugees, the direct interaction between them and the hosts generates an increase in both the level and the types of the economic activity carried out by the hosts. However, the market creation is limited to a radius of approximately 5 kilometres.

Suggested Citation

  • Marco d’Errico & Rama Dasi Mariani & Rebecca Pietrelli & Furio Camillo Rosati, 2022. "Refugee-Host Proximity and Market Creation in Uganda," Journal of Development Studies, Taylor & Francis Journals, vol. 58(2), pages 213-233, February.
    • Handle: RePEc:taf:jdevst:v:58:y:2022:i:2:p:213-233
    DOI: 10.1080/00220388.2021.1961749
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    Cited by:

    1. Margherita Squarcina & Donato Romano, 2022. "Identifying the transmission channels of COVID-19 impact on poverty and food security in refugee-hosting districts of Uganda," Working Papers - Economics wp2022_08.rdf, Universita' degli Studi di Firenze, Dipartimento di Scienze per l'Economia e l'Impresa.
    2. Mariani, Rama Dasi & Rosati, Furio C. & Scaramozzino, Pasquale & D'Errico, Marco, 2023. "Gains from Variety: Refugee-Host Interactions in Uganda," IZA Discussion Papers 16434, Institute of Labor Economics (IZA).
    3. Uchenna, Efobi & Joseph, Ajefu, 2024. "Exploring the Spillover Effects of Internally Displaced Settlements on the Wellbeing of Children of the Locales," GLO Discussion Paper Series 1381, Global Labor Organization (GLO).
    4. Zhou, Yang-Yang & Grossman, Guy & Ge, Shuning, 2023. "Inclusive refugee-hosting can improve local development and prevent public backlash," World Development, Elsevier, vol. 166(C).
    5. Michael Christian Lehmann, 2023. "Macroeconomic volatility and anti‐refugee violence in developing countries: Evidence from commodity price shocks," Review of Development Economics, Wiley Blackwell, vol. 27(2), pages 992-1012, May.
    6. Kadigo, Mark Marvin & Maystadt, Jean-Francois, 2023. "How to cope with a refugee population? Evidence from Uganda," World Development, Elsevier, vol. 169(C).

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