The Effect of Ethnic Violence on an Export-Oriented Industry

50 Pages Posted: 22 Nov 2010

See all articles by Christopher Ksoll

Christopher Ksoll

University of Oxford

Rocco Macchiavello

University of Oxford - Nuffield College of Medicine; Centre for Economic Policy Research (CEPR)

Ameet Morjaria

Northwestern University - Department of Managerial Economics and Decision Sciences (MEDS)

Date Written: October 2010

Abstract

This paper investigates the effects of ethnic violence on export-oriented firms and their workers. Following the disputed 2007 Kenyan presidential election, export volumes of flower firms affected by the ensuing violence dropped by 38 percent and worker absence exceeded 50 percent. Large firms and firms with stable contractual relationships in export markets registered smaller proportional losses and had fewer workers absent. Model calibrations indicate that, to induce workers to come and work over-time, operating costs, on average, increased by 16 percent. For the marginal worker, the cost of going to work exceeded the average weekly income by 320 percent.

Keywords: ethnic Violence, exports, firm heterogeneity, non-traditional agriculture

JEL Classification: D74, F14, O13, Q13

Suggested Citation

Ksoll, Christopher and Macchiavello, Rocco and Morjaria, Ameet, The Effect of Ethnic Violence on an Export-Oriented Industry (October 2010). CEPR Discussion Paper No. DP8074. Available at SSRN: https://ssrn.com/abstract=1711087

Christopher Ksoll (Contact Author)

University of Oxford ( email )

Mansfield Road
Oxford, Oxfordshire OX1 4AU
United Kingdom

Rocco Macchiavello

University of Oxford - Nuffield College of Medicine ( email )

New Road
Oxford, OX1 1NF
United Kingdom

Centre for Economic Policy Research (CEPR)

London
United Kingdom

Ameet Morjaria

Northwestern University - Department of Managerial Economics and Decision Sciences (MEDS) ( email )

2001 Sheridan Road
Evanston, IL 60208
United States

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
5
Abstract Views
974
PlumX Metrics