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Temporary trade shocks and regional development: evidence from the closure of Abidjan port

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  • Forhad Shilpi
  • M Shahe Emran
  • Brian Blankespoor
  • Harold Coulombe

Abstract

Can temporary trade restrictions reshape regional development? To analyze this, we exploit the Cote d’Ivoire civil war that disrupted access to Abidjan port for neighboring land-locked countries: Mali and Burkina Faso. Estimates from a difference-in-difference design suggest negative effects on economic activity and a reverse structural change in the treatment communes. We find evidence of persistence through irreversible investment in built-up areas and divergence in the growth of nightlights. Treatment communes at the intermediate distance from the nearest city experienced stronger adverse impacts, driven partly by a relocation to the communes close to other ports.

Suggested Citation

  • Forhad Shilpi & M Shahe Emran & Brian Blankespoor & Harold Coulombe, 2024. "Temporary trade shocks and regional development: evidence from the closure of Abidjan port," Journal of Economic Geography, Oxford University Press, vol. 24(2), pages 333-352.
    • Handle: RePEc:oup:jecgeo:v:24:y:2024:i:2:p:333-352.
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    More about this item

    Keywords

    temporary trade restrictions; regional development; structural change in employment; spatial reallocation; persistence;
    All these keywords.

    JEL classification:

    • F15 - International Economics - - Trade - - - Economic Integration
    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
    • O24 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Trade Policy; Factor Movement; Foreign Exchange Policy
    • O55 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Africa

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