Abstract
Abstract Can temporary trade restrictions reshape regional development? To analyze this, we exploit the Cote d’Ivoire civil war that disrupted access to Abidjan port for neighboring land-locked countries: Mali and Burkina Faso. Estimates from a difference-in-difference design suggest negative effects on economic activity and a reverse structural change in the treatment communes. We find evidence of persistence through irreversible investment in built-up areas and divergence in the growth of nightlights. Treatment communes at the intermediate distance from the nearest city experienced stronger adverse impacts, driven partly by a relocation to the communes close to other ports.
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