Institute for the Study of International Development, McGill University
Abstract:
Import restrictions of dual-use goods and materials led to lower output and wages paid in sectors using those materials more intensively as production inputs. Local labor market conditions worsened in areas where employment is concentrated in these sectors. Episodes of political violence were more likely to occur in those same localities as a consequence. Security-motivated trade restrictions have a negative effect on industrial output and local labor markets. Economic integration could bring possibly high returns in terms of political stabilization.
Topic:
Security, Political Violence, Political stability, and Trade