The Effect of Refugee Inflows on Host Communities: Evidence from Tanzania

Abstract

Despite the large and growing number of humanitarian emergencies, there is very little economic research on the impact of refugees and internally displaced people on the communities that receive them. This paper analyzes the impact of the refugee inflows from Burundi and Rwanda in 1993 and 1994 on host populations in western Tanzania. The analysis shows large increases in the prices of non-aid food items, and decreases in the prices of some aid-related food items. Examination of household assets suggest positive wealth effects of refugee camps on nearby rural areas, and negative ones for urban households.