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The persistent urbanising effect of refugee camps: evidence from Tanzania, 1985–2015

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  • Nsababera, Olive
  • Dickens, Richard
  • Disney, Richard

Abstract

With the rise of forced displacement, attention has turned to the economic impact of refugees. However, few studies investigate long-term impacts. We use data for Tanzania for the period 1985–2015 to examine the effect of camps on urbanisation and local development, exploiting a unique satellite-derived dataset of high spatial resolution and temporal frequency. We show a modest but significant effect of refugee camps on built-up area up to a 100 km distance. We then match camp locations to regional gross domestic product, local consumption spending and employment patterns. Output in areas with camps grew at a faster rate during camp operation, but closure of camps was associated with change in economic activity. Activity induced by camps is largely in non-tradeable goods and services rather than inducing longer run structural transformation.

Suggested Citation

  • Nsababera, Olive & Dickens, Richard & Disney, Richard, 2023. "The persistent urbanising effect of refugee camps: evidence from Tanzania, 1985–2015," LSE Research Online Documents on Economics 121186, London School of Economics and Political Science, LSE Library.
    • Handle: RePEc:ehl:lserod:121186
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    References listed on IDEAS

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    Keywords

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    JEL classification:

    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • R14 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Land Use Patterns

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