CEU eTD Collection (2020); Nelson, Chigozie Juliana: Consequences of Land Border Closure: Evidences from a Natural Experiment in Nigeria

CEU Electronic Theses and Dissertations, 2020
Author Nelson, Chigozie Juliana
Title Consequences of Land Border Closure: Evidences from a Natural Experiment in Nigeria
Summary The Nigerian government decided to shut all its land borders in August 2019 in a bid to eliminate the persistent smuggling of food items, especially rice, from neighbouring countries. Research has shown that protectionist policies, such as border closure, may have a negative impact on a country’s real welfare. This thesis sought to uncover the impact which the policy had on the price of food items that face import competition. Using a difference-in-difference regression model to estimate the average prices of food items that face import competition and those which do not, four months before and four months after the policy was implemented, it was observed that there was an increase in the prices of food items that face import competition as well as those which face no import competition. The result provides evidence of informal cross-border trade and smuggling through Nigeria’s land borders. In order to discourage smuggling of rice into the country and boost production of rice locally, the government should consider putting measures in place to ensure that the land borders are efficiently manned, and also provide support to local rice producers.
Supervisor Horvath, Julius
Department Economics MA
Full texthttps://www.etd.ceu.edu/2020/nelson_chigozie.pdf

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