Open-Doors Policy and Economic Contribution of Urban Refugees in Host Countries: Evidence from Benin

This paper assesses the economic contribution of urban refugees in Benin. The main objective of the research is to assess the economic contribution of urban refugees settled in Cotonou to the host community in Benin, examine the challenges they are facing, and the refugee’s policy impact. Therefore, this study used a mixed-methods approach to design and collect primary data on refugees from Central Africa Republic (CAR) who re-sides in the urban areas of Benin in Cotonou. In addition, the study used respondent-driven sampling (RDS) technique. The qualitative data collected enable us to understand the challenges facing refugees and policies and practices in Benin. Meanwhile, the theory used in this research is inspired by the neoclassical theory of demand and new institutional economics. Moreover, the quantitative analysis is strengthened by the econometric framework analysis. The results revealed that the refugees in the urban areas of Benin in Cotonou face a lot of challenges in terms of employment. The larger population of them lack a consistent income to strengthen their livelihood. But the refugee’s policies and practices are in their favour. Thus, the regression analysis revealed that the refugees in Benin contribute positively and significantly to the host community’s economy.