The Economic Costs of Conflict: A Case Study of the

  title={The Economic Costs of Conflict: A Case Study of the},
  author={Basque Country and Alberto Abadie and Javier Gardeazabal},
This article investigates the economic eects of conict, using the terrorist conict in the Basque Country as a case study. Our analysis rests on two dierent strategies. First, we use a combination of other regions to construct a \synthetic" control region which resembles many relevant economic characteristics of the Basque Country before the outset of political terrorism in the 1970’s. The subsequent economic evolution of this \counterfactual" Basque Country without terrorism is compared to the… 

The Economic Cost of Armed Conflict

This paper estimates the distribution of the effect of armed conflict on real GDP per capita and investment. For each conflict, we construct a synthetic control from a set of conflict-free countries


In this article, the economic impact of diminishing levels of uncertainty on investment, as a result of conflict resolution processes, is tested by means of a case study on a European region largely

The Global Economic Impact of Terrorism

  • Dumitru Luca
  • Political Science, Economics
    European Journal of Interdisciplinary Studies
  • 2021
In general, when analyzing the costs of armed conflict, the literature most often relates to civil wars or interstate conflicts. The moment of September 11, 2001 marked the beginning of a new concern

The Economic Costs of Separatist Terrorism in Turkey

Turkey has been suffering from separatist terrorism and the political conflict it implies since the mid-1980s, both of which are believed to have a negative impact on economic welfare. This article

The Economic Consequences of Organized Crime: Evidence from Southern Italy

I examine the post-war economic growth of two regions in southern Italy exposed to the presence of maa organizations after the 1970s and apply synthetic control methods to estimate their

Dismantling terrorist's economics: the case of ETA.

This article aims to analyze the sources of terrorist financing for the case of the Basque terrorist organization ETA. It takes into account the network of entities that, under the leadership and

Economic Costs of Civil Conflicts: The Case of Burundi

This study examines the effects of episodes of civil conflicts in Burundi on its economic performance. The study applies the regression method using Extreme Bound Analysis, and the Synthetic Control

The Economic Effects of Terrorism : Counterfactual Analysis of the Case of Israel

The paper evaluates the effect of Palestinian terror on the Israeli economy by using counterfactual methodology and quarterly data for the macroeconomic aggregates of OECD countries and Israel from

The Economic Effects of International Administrations: The Cases of Kosovo and East Timor

Does the involvement of foreign third parties in the management of a country in the wake of a civil war have positive or negative economic effects? The approaches used to address this question in the

PERUVIAN ECONOMIC ASSOCIATION The economic effects of international administrations: The cases of Kosovo and East Timor

Does the involvement of foreign third parties in the post-conflict management of a country in the wake of a civil war have positive or negative economic effects? The approaches used to address this



Poverty, the Coup Trap, and the Seizure of Executive Power

The transfer of power through the use of military force is a commonplace event in world affairs. Although no two coups d'etat are alike, they all have a common denominator: poverty. We analyze

Terrorism and foreign direct investment in spain and greece

This paper puts forward a time-series methodology for quantifying the impact that terrorist incidents have had on net foreign direct investment. For Spain, a transfer function is used for

The European Economy

After a deep economic recession during the winter of 2008/2009, which was triggered by a US-led financial crisis, many countries went through a stabilisation period and now seem to have entered a

Education, Poverty, Political Violence and Terrorism: Is There a Causal Connection?

The paper investigates whether there is a causal link between poverty or low education and participation in politically motivated violence and terrorist activities. After presenting a discussion of

Calculating Tragedy: Assessing the Costs of Terrorism

The trends and consequences of terrorist activities are often captured by counting the number of incidents and casualties. More recently, the effects of terrorist acts on various aspects of the

Income Distribution, Political Instability, and Investment

Political instability and economic growth

This paper investigates the relationship between political instability and per capita GDP growth in a sample of 113 countries for the period 1950 through 1982. We define political instability as the

Social conflict and growth

Despite the predictions of the neoclassical theory of economic growth, we observe that poor countries have invested at lower rates and have not grown faster than rich countries. To explain these

Greed and Grievance in Civil War

We investigate the causes of civil war, using a new data set of wars during 1960-99. We test a `greed’ theory focusing on the ability to finance rebellion, against a`grievance’ theory focusing on

The Growth of Nations

AVERAGE INCOMES in the world's richest countries are more than ten times as high as in the world's poorest countries. It is apparent to anyone who travels the world that these large differences in