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Economic Consequences of Forced Displacement

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  • Fiala, Nathan

    () (University of Connecticut)

Abstract

Microenterprises are a major contributor to income and employment in developing countries. There is growing evidence though that they do not expand beyond their intitial start-up point. I present the results of a randomized experiment with microenterprise owners in Uganda designed to explore the constraints to this growth. Business owners were randomly selected to receive loans, cash grants, business skills training, or a combination of these programs. I find that men with access to loans and training report significantly higher profits. The loan-only intervention had some initial impact, but this does not last. There are no impacts from the grant intervention, and no effects for women from any of the interventions. While recent research has found little effect from microfinance, I argue this is because men are not included in the studies. The results from this experiment suggest that male owned businesses can expand from microfinance.

Suggested Citation

  • Fiala, Nathan, 2014. "Economic Consequences of Forced Displacement," Working Papers 29, University of Connecticut, Department of Agricultural and Resource Economics, Charles J. Zwick Center for Food and Resource Policy.
  • Handle: RePEc:zwi:wpaper:29
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    File URL: http://zwickcenter.uconn.edu/working_papers_3_1997666304.pdf
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    Cited by:

    1. Carlos Bozzoli & Tilman Brück & Tony Muhumuza, 2012. "Movers or Stayers? Understanding the Drivers of IDP Camp Decongestion during Post-Conflict Recovery in Uganda," Discussion Papers of DIW Berlin 1197, DIW Berlin, German Institute for Economic Research.
    2. Dominic Rohner & Mathias Thoenig & Fabrizio Zilibotti, 2013. "Seeds of distrust: conflict in Uganda," Journal of Economic Growth, Springer, vol. 18(3), pages 217-252, September.
    3. repec:bla:jorssa:v:181:y:2018:i:3:p:889-906 is not listed on IDEAS
    4. Michal Burzynski & Christoph Deuster & Frederic Docquier & Jaime de Melo, 2019. "Climate Change, Inequality, and Human Migration," Discussion Papers (IRES - Institut de Recherches Economiques et Sociales) 2019014, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
    5. Bauer, Thomas K. & Giesecke, Matthias & Janisch, Laura M., 2017. "Forced migration and mortality," Ruhr Economic Papers 713, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    6. Thomas K. Bauer & Matthias Giesecke & Laura M. Janisch, 2019. "The Impact of Forced Migration on Mortality: Evidence From German Pension Insurance Records," Demography, Springer;Population Association of America (PAA), vol. 56(1), pages 25-47, February.
    7. Asha Abdel-Rahim & Dany Jaimovich & Aleksi Ylönen, 2018. "Forced displacement and behavioral change: an empirical study of returnee households in the Nuba Mountains," Defence and Peace Economics, Taylor & Francis Journals, vol. 29(2), pages 190-220, February.
    8. Tran, Van Q., 2015. "Household's coping strategies and recoveries from shocks in Vietnam," The Quarterly Review of Economics and Finance, Elsevier, vol. 56(C), pages 15-29.
    9. repec:jku:cdlwps:2015_08 is not listed on IDEAS
    10. Ivan Zilic, 2018. "Effect of forced displacement on health," Journal of the Royal Statistical Society Series A, Royal Statistical Society, vol. 181(3), pages 889-906, June.
    11. Loaiza Quintero, Osmar Leandro & Muñetón Santa, Guberney & Vanegas, Juan Gabriel, 2018. "Forced displacement and Multidimensional Poverty in Antioquia, Colombia: an assessment by means of a Seemingly Unrelated Regression," INVESTIGACIONES REGIONALES - Journal of REGIONAL RESEARCH, Asociación Española de Ciencia Regional, issue 41, pages 167-190.
    12. Braun, Sebastian & Dwenger, Nadja, 2017. "The local environment shapes refugee integration: Evidence from post-war Germany," Hohenheim Discussion Papers in Business, Economics and Social Sciences 10-2017, University of Hohenheim, Faculty of Business, Economics and Social Sciences.
    13. Wang, Shun & Zhou, Weina, 2017. "The Unintended Long-Term Consequences of Mao’s Mass Send-Down Movement: Marriage, Social Network, and Happiness," World Development, Elsevier, vol. 90(C), pages 344-359.
    14. Margherita Calderone, 2017. "Are there different spillover effects from cash transfers to men and women? Impacts on investments in education in post-war Uganda," WIDER Working Paper Series 093, World Institute for Development Economic Research (UNU-WIDER).
    15. Hoenig, Tillman, 2018. "The Effect of Conflict on Education: Evidence from Sierra Leone," MPRA Paper 85064, University Library of Munich, Germany.
    16. Ivlevs, Artjoms & Veliziotis, Michail, 2017. "Beyond Conflict: Long-Term Labour Market Integration of Internally Displaced Persons in Post-Socialist Countries," IZA Discussion Papers 11215, Institute of Labor Economics (IZA).
    17. Sarah Bridges & Douglas Scott, 2019. "Early childhood health during conflict: The legacy of the Lord’s Resistance Army in Northern Uganda," Discussion Papers 2019-11, University of Nottingham, CREDIT.
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    More about this item

    Keywords

    Economic development; microenterprises; microfinance; cash grants; entrepreneurship training; credit constraints;

    JEL classification:

    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
    • C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • M53 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Training

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