Economic Impact of Selected Conflicts in the Middle East: What Can We Learn from the Past?

June 11, 2014

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Format: Chicago

Randa Sab. Economic Impact of Selected Conflicts in the Middle East: What Can We Learn from the Past?, (USA: International Monetary Fund, 2014) accessed September 20, 2024

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

Using narrative-based country-case studies, war episodes in the Middle East were examined to assess their economic impact on conflict and neighboring economies. The paper found that conflicts led to a contraction in growth, higher inflation, large fiscal and current account deficits, loss of reserves, and a weakened financial system. Post-conflict recovery depended on the economic and institutional development of the country, economic structure, duration of the war, international engagement, and prevailing security conditions. The net economic impact on neighboring countries varied according to their initial economic conditions, number and income level of refugees they hosted, economic integration, and external assistance.

Subject: Balance of payments, Central banks, Current account deficits, Economic sectors, Exchange rates, Financial sector, Foreign exchange, Inflation, International reserves, Prices

Keywords: Conflict, Country-case study methodology, Current account deficits, Debt settlement program, Excess demand, Exchange rates, Financial sector, Financial system, Free market, Global, Inflation, Inflation in Kuwait, International reserves, Invasion of Iraq, Iraq, Kuwait, Lebanon, Lebanon's banking system, Middle East, Post-conflict economic recovery, WP

Publication Details

Pages:

32
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 2014/100
Stock No:

WPIEA2014100
ISBN:

9781498310895
ISSN:

1018-5941

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