2019
DOI: 10.1016/j.worlddev.2019.04.015
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Assessing the direct and spillover effects of shocks to refugee remittances

Abstract: We examine the impact of exogenously shutting down remittances to Kakuma refugee camp in northern Kenya during 2015. We find that the remittance shutdown reduced consumption of refugees, and also negatively affected host populations surrounding the camps. These findings underscore the tight links between refugee camps and surrounding communities, and are in general a testament to the multiplier effects of remittances.

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Cited by 12 publications
(7 citation statements)
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“…Following the example of Uganda (Jacobsen, 2002), UNHCR and the Rwandan Government might try to mitigate possible resentment among the locals by distributing a larger share of the assistance to the areas surrounding the refugee camps. It is important that local households, which are at times as poor as the incoming refugees, do not become even more marginalized (Alix‐Garcia et al, 2019; Whitaker, 2002). In order to achieve the Rwandan Government's goal of “promoting social cohesion and peaceful coexistence” (UNHCR, 2020, p. 17) between local and refugee households, financial and developmental assistance that not only benefits refugees, but also targets the most marginalized locals may be warranted.…”
Section: Discussionmentioning
confidence: 99%
“…Following the example of Uganda (Jacobsen, 2002), UNHCR and the Rwandan Government might try to mitigate possible resentment among the locals by distributing a larger share of the assistance to the areas surrounding the refugee camps. It is important that local households, which are at times as poor as the incoming refugees, do not become even more marginalized (Alix‐Garcia et al, 2019; Whitaker, 2002). In order to achieve the Rwandan Government's goal of “promoting social cohesion and peaceful coexistence” (UNHCR, 2020, p. 17) between local and refugee households, financial and developmental assistance that not only benefits refugees, but also targets the most marginalized locals may be warranted.…”
Section: Discussionmentioning
confidence: 99%
“…The presence of a refugee population has various economic consequences for the surrounding local community. The existence of a camp can have benefits for its host community (Jansen, 2009; Alix-Garcia et al , 2019). The presence of refugees in general can lead to economic expansion and innovation (Refugee Studies Centre, 2011).…”
Section: Discussion Of Findings and Potential Limitationsmentioning
confidence: 99%
“…Host community and external relations: Tensions may rise between refugees and locals when food rations are cut: this was the case with Osire refugee camp in Namibia, as neighbouring farmers grew increasingly concerned about trespassing and theft stemming from refugee vulnerability (Oliver & Ilcan, 2018). Cuts in food rations and cash transfers that directly reduce the ability of refugees to purchase or barter goods can also hurt the local economy and purchasing power of host populations, as was the case with Kakuma camp in Kenya (Alix-Garcia et al, 2019). In addition, cuts can undermine the ability of refugees in camps to assist their external social networks.…”
Section: Gender-based and Other Violencementioning
confidence: 99%
“…There is various literature that discusses how refugees can have positive effects on host communities through their market interactions ; however, these same interactions can also increase the risk for host households that are integrated into them (Alix-Garcia et al, 2019). Cuts in food aid rations and cash transfers that directly reduce the ability of refugees to purchase or barter goods are likely to also hurt the host populations that have grown accustomed to living near the camps (Alix-Garcia et al, 2019). In Kenya, for example, cuts in rations and variations in remittances to refugees in Kakuma camp resulted in decreases in the number and quantity of food items purchased by Turkana households near the camp.…”
Section: Linkages To Host Economymentioning
confidence: 99%