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The economics of the Syrian refugee crisis in neighbouring countries: The case of Lebanon

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  • Anda David
  • Mohamed Ali Marouani
  • Charbel Nahas
  • Björn Nilsson

Abstract

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.

Suggested Citation

  • Anda David & Mohamed Ali Marouani & Charbel Nahas & Björn Nilsson, 2020. "The economics of the Syrian refugee crisis in neighbouring countries: The case of Lebanon," Economics of Transition and Institutional Change, John Wiley & Sons, vol. 28(1), pages 89-109, January.
    • Handle: RePEc:wly:ectrin:v:28:y:2020:i:1:p:89-109
    DOI: 10.1111/ecot.12230
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    Cited by:

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    2. Hugo Sant'Anna & Samyam Shrestha, 2023. "Labor Market Effects of the Venezuelan Refugee Crisis in Brazil," Papers 2302.04201, arXiv.org, revised May 2024.
    3. Björn Nilsson & Racha Ramadan, 2020. "Migration and Inequalities Around the Mediterranean Sea," Working Papers 1390, Economic Research Forum, revised 20 Apr 2020.
    4. Pascal L. Ghazalian, 2022. "The effects of the Arab Spring on female labour force participation in the MENA region," Economics of Transition and Institutional Change, John Wiley & Sons, vol. 30(4), pages 869-900, October.
    5. Lemaire Thibault, 2023. "Civil Conflicts and Exchange Rate Misalignment: Evidence from MENA and Arab League Members," Review of Middle East Economics and Finance, De Gruyter, vol. 19(2), pages 101-130, August.
    6. Ayfer Ozyilmaz & Yuksel Bayraktar & Esme Isik & Metin Toprak & Mehmet Firat Olgun & Serdar Aydin & Tuncay Guloglu, 2022. "The Impact of Refugees on Income Inequality in Developing Countries by Using Quantile Regression, ANN, Fixed and Random Effect," Sustainability, MDPI, vol. 14(15), pages 1-16, July.

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    More about this item

    JEL classification:

    • E17 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Forecasting and Simulation: Models and Applications
    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination

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