IDEAS home Printed from https://ideas.repec.org/a/eee/chieco/v89y2025ics1043951x24002189.html
   My bibliography  Save this article

The bad neighborhood effect: Supply chain disruptions arising from neighboring wars

Author

Listed:
  • Ding, Haoyuan
  • Tang, Junjie
  • Zhang, Mo

Abstract

In the 21st century, African nations continue to grapple with recurring civil conflicts and persistent economic challenges. This study demonstrates a novel and critical channel through which wars hinder Africa's long-term growth: isolating African firms from global supply chains. Leveraging a unique dataset containing conflict data and information on supplier-customer relationships, we provide empirical evidence of the disruptive effects of neighboring conflicts on the overseas customer relationships of African firms. These conflicts impose multiple shadow costs on nearby peaceful nations. Furthermore, our findings show that wars cause more substantial harm to non-natural-resource industries in Africa, making it harder for them to maintain international customer relationships.

Suggested Citation

  • Ding, Haoyuan & Tang, Junjie & Zhang, Mo, 2025. "The bad neighborhood effect: Supply chain disruptions arising from neighboring wars," China Economic Review, Elsevier, vol. 89(C).
    • Handle: RePEc:eee:chieco:v:89:y:2025:i:c:s1043951x24002189
    DOI: 10.1016/j.chieco.2024.102329
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1043951X24002189
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.chieco.2024.102329?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Keywords

    Civil conflict; Economic development; Global supply chain; Natural resource; African economy;
    All these keywords.

    JEL classification:

    • F0 - International Economics - - General
    • F5 - International Economics - - International Relations, National Security, and International Political Economy
    • F6 - International Economics - - Economic Impacts of Globalization

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:chieco:v:89:y:2025:i:c:s1043951x24002189. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/chieco .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.