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The development push of refugees: Evidence from Tanzania:

Author

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  • Maystadt, Jean-François
  • Duranton, Gilles
Abstract
Every year, thousands of people flee their country of origin to seek protection mainly in neighboring countries. Understanding better the consequences of temporary population shocks on hosting economies should help to guide policies to enhance resilience in emergency situations. This study exploits 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.

Suggested Citation

  • Maystadt, Jean-François & Duranton, Gilles, 2014. "The development push of refugees: Evidence from Tanzania:," IFPRI discussion papers 1377, International Food Policy Research Institute (IFPRI).
    • Handle: RePEc:fpr:ifprid:1377
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    Cited by:

    1. Isabel Ruiz & Carlos Vargas‐Silva, 2018. "The impact of hosting refugees on the intra‐household allocation of tasks: A gender perspective," Review of Development Economics, Wiley Blackwell, vol. 22(4), pages 1461-1488, November.
    2. Nsababera, Olive, 2020. "Refugee camps – A lasting legacy? Evidence on long-term health impact," Economics & Human Biology, Elsevier, vol. 39(C).
    3. Merle Kreibaum, 2014. "Their Suffering, Our Burden? How Congolese Refugees Affect the Ugandan Population," HiCN Working Papers 181, Households in Conflict Network.
    4. Clotilde Mahé & Sergio Parra-Cely, 2021. "Panic? Probing Angst over Immigration and Crime," DEM Discussion Paper Series 21-04, Department of Economics at the University of Luxembourg.
    5. Zhou,Yang-Yang & Grossman,Guy & Ge,Shuning, 2022. "Inclusive Refugee-Hosting in Uganda Improves LocalDevelopment and Prevents Public Backlash," Policy Research Working Paper Series 9981, The World Bank.
    6. Ashenafi Belayneh Ayenew, 2020. "Welfare Impact of Hosting Refugees in Ethiopia," HiCN Working Papers 341, Households in Conflict Network.
    7. Vintar,Mirko & Beltramo,Theresa Parrish & Delius,Antonia Johanna Sophie & Egger,Dennis Timo & Pape,Utz Johann, 2022. "Impact of COVID-19 on Labor Market Outcomes of Refugees and Nationals in Kenya," Policy Research Working Paper Series 9960, The World Bank.
    8. Redding, Stephen J. & Turner, Matthew A., 2015. "Transportation Costs and the Spatial Organization of Economic Activity," Handbook of Regional and Urban Economics, in: Gilles Duranton & J. V. Henderson & William C. Strange (ed.), Handbook of Regional and Urban Economics, edition 1, volume 5, chapter 0, pages 1339-1398, Elsevier.
    9. Cansu Oymak & Jean-François Maystadt, 2023. "Can refugees improve native children’s health?: Evidence from Turkey," LIDAM Discussion Papers IRES 2023017, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
    10. Ayenew, Ashenafi Belayneh, 2021. "Welfare Impact of Hosting Refugees in Ethiopia," EconStor Preprints 228519, ZBW - Leibniz Information Centre for Economics.
    11. Ludolph,Lars & Šedová,Barbora & Talevi,Marta, 2022. "Inequality and Security in the Aftermath of Internal Population Displacement Shocks :Evidence from Nigeria," Policy Research Working Paper Series 10053, The World Bank.
    12. Craig Loschmann & Özge Bilgili & Melissa Siegel, 2019. "Considering the benefits of hosting refugees: evidence of refugee camps influencing local labour market activity and economic welfare in Rwanda," IZA Journal of Migration and Development, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 9(1), pages 1-23, December.
    13. Aysun Aygun & Murat Guray Kirdar & Berna Tuncay, 2020. "The Effect of Hosting 3.4 Million Refugees on the Health System in Turkey and Infant, Child, and Elderly Mortality among Natives," Koç University-TUSIAD Economic Research Forum Working Papers 2014, Koc University-TUSIAD Economic Research Forum.
    14. Remi Jedwab & Mr. Prakash Loungani & Anthony Yezer, 2019. "How Should We Measure City Size? Theory and Evidence Within and Across Rich and Poor Countries," IMF Working Papers 2019/203, International Monetary Fund.
    15. Aygün, Aysun & Güray Kırdar, Murat & Tuncay, Berna, 2021. "The effect of hosting 3.4 million refugees on native population mortality," Journal of Health Economics, Elsevier, vol. 80(C).
    16. Mustafa Özer & Jan Fidrmuc, 2024. "Does Immigration Affect the Natives’ Mental Health? Causal Evidence from Forced Syrian Migration to Turkey," CESifo Working Paper Series 11399, CESifo.
    17. Bertinelli,Luisito & Comertpay,Rana & Maystadt,Jean-François, 2022. "Refugees, Diversity and Conflict in Sub-Saharan Africa," Policy Research Working Paper Series 10052, The World Bank.
    18. George, Justin & Adelaja, Adesoji, 2022. "Armed conflicts, forced displacement and food security in host communities," World Development, Elsevier, vol. 158(C).
    19. Ayenew,Ashenafi Belayneh, 2021. "Welfare Impact of Hosting Refugees in Ethiopia," Policy Research Working Paper Series 9613, The World Bank.
    20. Salemi, Colette, 2021. "Refugee camps and deforestation in Sub-Saharan Africa," Journal of Development Economics, Elsevier, vol. 152(C).
    21. Morales, Juan S., 2018. "The impact of internal displacement on destination communities: Evidence from the Colombian conflict," Journal of Development Economics, Elsevier, vol. 131(C), pages 132-150.
    22. Jedwab, Remi & Loungani, Prakash & Yezer, Anthony, 2021. "Comparing cities in developed and developing countries: Population, land area, building height and crowding," Regional Science and Urban Economics, Elsevier, vol. 86(C).
    23. Isabel Ruiz & Carlos Vargas‐Silva, 2018. "The impact of hosting refugees on the intra‐household allocation of tasks: A gender perspective," Review of Development Economics, Wiley Blackwell, vol. 22(4), pages 1461-1488, November.

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    More about this item

    Keywords

    Refugees; Migration; roads; infrastructure; Economic development; transportation; Poverty; Climate; population shocks; resilience; multiple equilibrium;
    All these keywords.

    JEL classification:

    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming

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