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Electoral Violence and Supply Chain Disruptions in Kenya's Floriculture Industry

Author

Listed:
  • Christopher Ksoll

    (University of Sherbrooke)

  • Rocco Macchiavello

    (London School of Economics and CEPR)

  • Ameet Morjaria

    (Kellogg School of Management, NBER and CEPR)

Abstract

Violent conflicts, particularly at election times in Africa, are a common cause of instability and economic disruption. This paper studies how firms react to electoral violence using the case of Kenyan flower exporters during the 2008 postelection violence as an example. The violence induced a large negative supply shock that reduced exports primarily through workers' absence and had heterogeneous effects: larger firms and those with direct contractual relationships in export markets suffered smaller production and loss of workers. On the demand side, global buyers were not able to shift sourcing to Kenyan exporters located in areas not directly affected by the violence or to neighboring Ethiopian suppliers. Consistent with difficulties in ensuring against supply-chain risk disruptions caused by electoral violence, firms in direct contractual relationships ramp up shipments just before the subsequent 2013 presidential election to mitigate risk.

Suggested Citation

  • Christopher Ksoll & Rocco Macchiavello & Ameet Morjaria, 2023. "Electoral Violence and Supply Chain Disruptions in Kenya's Floriculture Industry," The Review of Economics and Statistics, MIT Press, vol. 105(6), pages 1335-1351, November.
    • Handle: RePEc:tpr:restat:v:105:y:2023:i:6:p:1335-1351
    DOI: 10.1162/rest_a_01185
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    Cited by:

    1. Kemal Türkcan & Socrates Majune Kraido & Eliud Moyi, 2022. "Export margins and survival: A firm‐level analysis using Kenyan data," South African Journal of Economics, Economic Society of South Africa, vol. 90(2), pages 149-174, June.
    2. Cajal-Grossi, Julia & Del Prete, Davide & Macchiavello, Rocco, 2023. "Supply chain disruptions and sourcing strategies," International Journal of Industrial Organization, Elsevier, vol. 90(C).

    More about this item

    JEL classification:

    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances; Revolutions
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness

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