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Epidemics and rapacity of multinational companies

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  • Tommaso Sonno
  • Davide Zufacchi

Abstract

Do multinationals engage in rent-seeking behaviour in developing countries during crises? With a difference in discontinuity approach, we use the Ebola epidemic in Liberia as a natural experiment on the sharp increase in deforestation, which produced a dramatic growth in newly planted palm oil trees and a 1428% increase in palm oil exports. We show that the probability of forest fire - the fastest way to clear forests and start new production - increased by 125% in the same period. Both effects are amplified in areas populated by ethnic minorities.

Suggested Citation

  • Tommaso Sonno & Davide Zufacchi, 2022. "Epidemics and rapacity of multinational companies," CEP Discussion Papers dp1833, Centre for Economic Performance, LSE.
    • Handle: RePEc:cep:cepdps:dp1833
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    More about this item

    Keywords

    epidemics; multinational enterprises; land grabbing; palm oil;
    All these keywords.

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products

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