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The development push of refugees: evidence from Tanzania

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  • Jean-François 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-François Maystadt & Gilles Duranton, 2019. "The development push of refugees: evidence from Tanzania," Journal of Economic Geography, Oxford University Press, vol. 19(2), pages 299-334.
    • Handle: RePEc:oup:jecgeo:v:19:y:2019:i:2:p:299-334.
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    File URL: http://hdl.handle.net/10.1093/jeg/lby020
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    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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