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The economics of the Syrian refugee crisis in neighboring countries. The case of Lebanon

Author

Listed:
  • Anda David

    (Agence Française de Développement & DIAL)

  • Mohamed Ali Marouani

    (UMR « Développement et Société », IEDES / Université Paris1-Panthéon-Sorbonne, PSL, Université Paris-Dauphine, LEDa, IRD UMR DIAL)

  • Charbel Nahas

    (Former Minister of Labor and Telecom, Lebanon)

  • Björn Nilsson

    (PSL, Université Paris-Dauphine, LEDa, UMR DIAL)

Abstract

In this article, we investigate the effects of a massive displacement of workers from a war-torn economy on the economy of a neighboring country. Applying a general equilibrium approach to the Lebanese economy, we explore effects from various components of the crisis on the labor 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 is found. When aid takes the form of investment subsidies, significantly better growth and labor 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, 2018. "The economics of the Syrian refugee crisis in neighboring countries. The case of Lebanon," Working Papers DT/2018/14, DIAL (Développement, Institutions et Mondialisation).
  • Handle: RePEc:dia:wpaper:dt201814
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    1. Asongu, Simplice & Uduji, Joseph & Okolo-Obasi, Elda, 2020. "Drivers and persistence of death in conflicts: global evidence," MPRA Paper 107240, University Library of Munich, Germany.
    2. Björn Nilsson & Racha Ramadan, 2020. "Migration and Inequalities around the Mediterranean Sea," LIS Working papers 788, LIS Cross-National Data Center in Luxembourg.

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    More about this item

    Keywords

    labor markets; macroeconomic impacts of refugees; Syrian crisis; Lebanon;
    All these keywords.

    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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