The Human Capital Legacy of a Trade Embargo

Author:

Chakravarty Abhishek1,Parey Matthias2,Wright Greg C3

Affiliation:

1. The University of Manchester

2. University of Surrey

3. University of California, Merced

Abstract

Abstract We estimate the effects of in-utero exposure to a trade embargo on survival and human capital in an import-dependent developing country. Using a regression discontinuity design, we find that a nearly comprehensive embargo imposed by India on Nepal in 1989 led to a large decline in reported live births, and increased early life mortality. The decline in births is concentrated in poorer, more remote districts, and is sharper for female births than male births, consistent with documented gender discrimination. Women survivors of exposure are more educated in adulthood than unexposed cohorts.

Publisher

Oxford University Press (OUP)

Subject

General Economics, Econometrics and Finance

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