Violence, Political Instability, and International Trade: Evidence from Kenya’s Cut Flower Sector
AbstractAbstract: 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.
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Bibliographic InfoPaper provided by Agricultural and Applied Economics Association in its series 2011 Annual Meeting, July 24-26, 2011, Pittsburgh, Pennsylvania with number 118374.
Date of creation: Oct 2011
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Kenya; Africa; EU; election violence; cut flowers; roses; imports; international trade; Demand and Price Analysis; International Development; International Relations/Trade; Political Economy; F14; F23; F59; O13; Q17;
Find related papers by JEL classification:
- F14 - International Economics - - Trade - - - Empirical Studies of Trade
- F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
- F59 - International Economics - - International Relations and International Political Economy - - - Other
- O13 - Economic Development, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
- Q17 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agriculture in International Trade
This paper has been announced in the following NEP Reports:
- NEP-AFR-2011-12-19 (Africa)
- NEP-ALL-2011-12-19 (All new papers)
- NEP-POL-2011-12-19 (Positive Political Economics)
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