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The development push of refugees

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  • Jean-Francois Maystadt
  • Gilles Duranton

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.

Suggested Citation

  • Jean-Francois Maystadt & Gilles Duranton, 2014. "The development push of refugees," Working Papers 66910685, Lancaster University Management School, Economics Department.
    • Handle: RePEc:lan:wpaper:66910685
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    Cited by:

    1. Isabel Ruiz & Carlos Vargas‐Silva, 2018. "The impact of hosting refugees on the intra‐household allocation of tasks: A gender perspective," Review of Development Economics, Wiley Blackwell, vol. 22(4), pages 1461-1488, November.
    2. Redding, Stephen J. & Turner, Matthew A., 2015. "Transportation Costs and the Spatial Organization of Economic Activity," Handbook of Regional and Urban Economics, in: Gilles Duranton & J. V. Henderson & William C. Strange (ed.), Handbook of Regional and Urban Economics, edition 1, volume 5, chapter 0, pages 1339-1398, Elsevier.
    3. Craig Loschmann & Özge Bilgili & Melissa Siegel, 2019. "Considering the benefits of hosting refugees: evidence of refugee camps influencing local labour market activity and economic welfare in Rwanda," IZA Journal of Migration and Development, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 9(1), pages 1-23, December.
    4. Remi Jedwab & Mr. Prakash Loungani & Anthony Yezer, 2019. "How Should We Measure City Size? Theory and Evidence Within and Across Rich and Poor Countries," IMF Working Papers 2019/203, International Monetary Fund.
    5. Morales, Juan S., 2018. "The impact of internal displacement on destination communities: Evidence from the Colombian conflict," Journal of Development Economics, Elsevier, vol. 131(C), pages 132-150.
    6. Jedwab, Remi & Loungani, Prakash & Yezer, Anthony, 2021. "Comparing cities in developed and developing countries: Population, land area, building height and crowding," Regional Science and Urban Economics, Elsevier, vol. 86(C).
    7. Isabel Ruiz & Carlos Vargas‐Silva, 2018. "The impact of hosting refugees on the intra‐household allocation of tasks: A gender perspective," Review of Development Economics, Wiley Blackwell, vol. 22(4), pages 1461-1488, November.

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    More about this item

    Keywords

    Refugees; Tanzania; Multiple equilibrium; Roads;
    All these keywords.

    JEL classification:

    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming

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