Template-Type: ReDIF-Paper 1.0 Author-Name: Jean-Francois Maystadt Author-Name-First: Jean-Francois Author-Name-Last: Maystadt Author-Name: Gilles Duranton Author-Name-First: Gilles Author-Name-Last: Duranton Title: The development push of refugees Abstract: We exploit a 1991–2010 Tanzanian household panel to assess the effects of the temporary refugee inflows originating from Burundi (1993) and Rwanda (1994). We find that the refugee presence has had a persistent and positive impact on the welfare of the local population. We investigate the possible channels of transmission, underscoring the importance of a decrease in transport costs as a key driver of this persistent change in welfare. We interpret these findings as the ability of a temporary shock to induce a persistent shift in the equilibrium through subsequent investments rather than a switch to a new equilibrium in a multiple-equilibrium setting. Creation-Date: 2014 File-URL: http://www.lancaster.ac.uk/media/lancaster-university/content-assets/documents/lums/economics/working-papers/RefugeesTanzania.pdf File-Format: application/pdf Number: 66910685 Classification-JEL: I32, O18, Q54 Keywords: Refugees, Tanzania, Multiple equilibrium, Roads Handle: RePEc:lan:wpaper:66910685