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The Effect of Ethnic Violence on an Export-Oriented Industry

Author

Listed:
  • Ksoll, Christopher
  • Macchiavello, Rocco
  • Morjaria, Ameet

Abstract

This paper investigates the effects of ethnic violence on export-oriented firms and their workers. Following the disputed 2007 Kenyan presidential election, export volumes of flower firms affected by the ensuing violence dropped by 38 percent and worker absence exceeded 50 percent. Large firms and firms with stable contractual relationships in export markets registered smaller proportional losses and had fewer workers absent. Model calibrations indicate that, to induce workers to come and work over-time, operating costs, on average, increased by 16 percent. For the marginal worker, the cost of going to work exceeded the average weekly income by 320 percent.

Suggested Citation

  • Ksoll, Christopher & Macchiavello, Rocco & Morjaria, Ameet, 2010. "The Effect of Ethnic Violence on an Export-Oriented Industry," CEPR Discussion Papers 8074, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:8074
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    References listed on IDEAS

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    Cited by:

    1. repec:ebd:wpaper:152 is not listed on IDEAS
    2. Jonas Hjort, 2013. "Ethnic Divisions and Production in Firms," CESifo Working Paper Series 4449, CESifo.
    3. Calì, Massimiliano & Miaari, Sami H., 2018. "The labor market impact of mobility restrictions: Evidence from the West Bank," Labour Economics, Elsevier, vol. 51(C), pages 136-151.
    4. Faith Justus, 2015. "Coupled effects on Kenyan horticulture following the 2008/2009 post-election violence and the 2010 volcanic eruption of Eyjafjallajökull," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 76(2), pages 1205-1218, March.
    5. Muhammad, Andrew & D'Souza, Anna & Amponsah, William A., 2011. "Violence, Political Instability, and International Trade: Evidence from Kenya’s Cut Flower Sector," 2011 Annual Meeting, July 24-26, 2011, Pittsburgh, Pennsylvania 118374, Agricultural and Applied Economics Association.
    6. Mose, Jared Isaboke, 2017. "Drivers of Labour Productivity in Flower Farms in Naivasha, Kenya," Sustainable Agriculture Research, Canadian Center of Science and Education, vol. 6(4), November.
    7. TENIKUE Michel & TEQUAME Miron, 2018. "Economic and Health Impacts of the 2011 Post-Electoral Crisis in Côte d’Ivoire: Evidence from Microdata," LISER Working Paper Series 2018-03, LISER.
    8. Rocco Macchiavello & Ameet Morjaria, 2015. "The Value of Relationships: Evidence from a Supply Shock to Kenyan Rose Exports," American Economic Review, American Economic Association, vol. 105(9), pages 2911-2945, September.
    9. Dieppe,Alistair Matthew & Kilic Celik,Sinem & Okou,Cedric Iltis Finafa, 2020. "Implications of Major Adverse Events on Productivity," Policy Research Working Paper Series 9411, The World Bank.
    10. Abidoye,Babatunde Oluwakayode & Cali,Massimiliano, 2015. "Income shocks and conflict : evidence from Nigeria," Policy Research Working Paper Series 7213, The World Bank.
    11. Klapper, Leora & Richmond, Christine & Tran, Trang, 2013. "Civil conflict and firm performance : evidence from Cote d'Ivoire," Policy Research Working Paper Series 6640, The World Bank.
    12. Rocco Macchiavello & Ameet Morjaria, 2015. "The Value of Relationships: Evidence from a Supply Shock to Kenyan Rose Exports," American Economic Review, American Economic Association, vol. 105(9), pages 2911-2945, September.
    13. Muhammad, Andrew & D’Souza, Anna & Amponsah, William, 2013. "Violence, Instability, and Trade: Evidence from Kenya’s Cut Flower Sector," World Development, Elsevier, vol. 51(C), pages 20-31.
    14. Francesco Amodio & Michele Di Maio, "undated". "Making Do with What You Have: Conflict, Firm Performance and Input Misallocation in Palestine," Development Working Papers 379, Centro Studi Luca d'Agliano, University of Milano.
    15. Catalina Tejada & Eliana Ferrara & Henrik Kleven & Florian Blum & Oriana Bandiera & Michel Azulai, 2015. "State Effectiveness, Growth, and Development," Working Papers id:6668, eSocialSciences.

    More about this item

    Keywords

    ethnic Violence; exports; firm heterogeneity; non-traditional agriculture;

    JEL classification:

    • 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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