Effects of the Nigeria Land Borders Closure on Benin Economy Measured from an Input-Output Model

Abstract

In this paper, the impact of Nigerian border closure on the Benin economy is analyzed using an Input-Output (IO) model to detail the interrelations between sectors and basing on the multipliers of the Social Accounting Matrix (SAM). Our simulation results show that the closure of Benin-Nigerian borders has a negative impact on the Benin economy with respect to its total exports. The prolonged closure of Nigeria's borders with Benin results in a drop in customs revenue which could slow down economic growth. Moreover, an additional public expenditure policy in support of agri-food industries could improve purchasing power and household income. In summary, the results of this paper enable us to stress that the impact of a trade restriction policy implemented by Nigeria is not underestimated by the countries that share some borders with Nigeria.