The Effect of Ethnic Violence on an Export-Oriented Industry
50 Pages Posted: 22 Nov 2010
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: Suggested Citation
Do you have negative results from your research you’d like to share?
Recommended Papers
-
The Economic Costs of Conflict: A Case-Control Study for the Basque Country
By Alberto Abadie and Javier Gardeazabal
-
The Economic Costs of Conflict: A Case-Control Study for the Basque Country
By Alberto Abadie and Javier Gardeazabal
-
Diamonds are Forever, Wars are Not. Is Conflict Bad for Private Firms?
-
Diamonds are Forever, Wars are Not: Is Conflict Bad for Private Firms?
-
The Economic Effects of Violent Conflict: Evidence from Asset Market Reactions
-
Estimating the Peace Dividend: The Impact of Violence on House Prices in Northern Ireland
-
Is the Tail Wagging the Dog? What is the Risk of Catastrophic Terrorism?
By Hamid Mohtadi and Antu Panini Murshid