Violence, Political Instability, and International Trade: Evidence from Kenya’s Cut Flower Sector

Abstract: We assess whether and how violence and political instability affect trade between developed and developing countries considering the special case of EU imports of Kenyan roses after the 2007/08 post-election violence and political instability in Kenya. Using the Rotterdam model to estimate EU demand for roses from Kenya and other global competitors, we find evidence of a structural change in the import growth rate for Kenya, approximately equivalent to an 18.6% tariff. These results highlight the importance of non-tariff barriers to trade and contribute to the growing literature on the role of insecurity and instability in hindering international trade.


Issue Date:
2011-10
Publication Type:
Conference Paper/ Presentation
Record Identifier:
http://ageconsearch.umn.edu/record/118374
PURL Identifier:
http://purl.umn.edu/118374
Total Pages:
27
JEL Codes:
F14; F23; F59; O13; Q17




 Record created 2017-04-01, last modified 2018-01-22

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