Foreign, Commonwealth & Development Office

11/22/2024 | Press release | Distributed by Public on 11/22/2024 04:34

Production network disruptions: evidence from the civil-conflict in Ethiopia

Production network disruptions: evidence from the civil-conflict in Ethiopia

This study investigates the role of trade networks in economic shocks using the 2020 civil war as a quasi-natural experiment.

From: Foreign, Commonwealth & Development Office Published 6 September 2024
Country: Ethiopia Document Type: Working Paper Theme: Economic Growth, Governance and Conflict Authors: Ayele, Y., Edjigu, H.

Abstract

This study investigates the role of trade networks in the dissemination and amplification of economic shocks using the 2020 Ethiopian civil war as a quasi-natural experiment. It uses Value-added Tax (VAT) data from the Ethiopian Revenue and Customs Authority (ERCA) to construct a detailed network of firm level supplier-buyer connections. Using a difference-indifferences strategy, it finds a significant negative impact of conflict exposure on firms located outside the conflict area.

This article is part of the Private Enterprise Development in Low Income Countries (PEDL) programme.

Citation

Ayele Y and Edjigu H. 'Production network disruptions: evidence from the civil-conflict in Ethiopia' PEDL Working Paper 2024

Links

Production network disruptions: evidence from the civil-conflict in Ethiopia

Updates to this page

Published 6 September 2024