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The economics of the Syrian refugee crisis in neighbouring countries: The case of Lebanon
Author(s) -
David Anda,
Marouani Mohamed Ali,
Nahas Charbel,
Nilsson Björn
Publication year - 2020
Publication title -
economics of transition and institutional change
Language(s) - English
Resource type - Journals
eISSN - 2577-6983
pISSN - 2577-6975
DOI - 10.1111/ecot.12230
Subject(s) - refugee , subsidy , context (archaeology) , economics , investment (military) , syrian refugees , development economics , production (economics) , economy , labour economics , market economy , political science , macroeconomics , politics , geography , archaeology , law
In this article, we investigate the effects of a massive displacement of workers from a war‐torn economy on the economy of a neighbouring country. Applying a general equilibrium approach to the Lebanese economy, we explore effects from various components of the crisis on the labour market, the production apparatus and macroeconomic indicators. Along with previous literature, our findings suggest limited or no adverse effects on high‐skilled native workers, but a negative impact on the most vulnerable Lebanese workers. When aid takes the form of investment subsidies, significantly better growth and labour market prospects arise, recalling the necessity of complementing humanitarian aid with development aid to succeed in achieving long‐term objectives. This may however not be politically viable in a context where refugees are considered as temporary.