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 and Governance and Conflict
Authors:
Ayele, Y. and 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 paper 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

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

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Published 6 September 2024
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