The development push of refugees: evidence from Tanzania

Maystadt, Jean-François;Duranton, Gilles
(2019) Journal of Economic Geography — Vol. 19, n° 2, p. 299-334 (2019)

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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.
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Maystadt, J.-F., & Duranton, G. (2019). The development push of refugees: evidence from Tanzania. Journal of Economic Geography, 19(2), 299-334. https://doi.org/10.1093/jeg/lby020 (Original work published 2019)