The development push of refugees: evidence from Tanzania. (24th April 2018)

• Record Type: Journal Article
• Authors: Maystadt, Jean-François; Duranton, Gilles
• Is Part Of: Journal of economic geography. Volume 19:Number 2(2019)
• Page Start: 299
• Page End: 334
• Publication Date: 2018-04-24
• Subjects: Refugees -- Tanzania -- multiple equilibrium -- roads; I32 -- O18 -- Q54; Economic geography -- Periodicals; 330.9
• DOI: 10.1093/jeg/lby020
• Languages: English
• ISSNs: 1468-2702

Abstract

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.