IDEAS home Printed from https://ideas.repec.org/p/wbk/wbrwps/11335.html

Conflicts and Firm Outcomes : Evidence from the West Bank and Gaza over the Last Decade (2016–25)

Author

Listed:
  • Deng, Jingyuan
  • Mele, Gianluca

Abstract

This paper provides novel firm-level evidence—based on an enterprise survey from June 2025—on the impact of conflict exposure on firm performance in a context of chronic instability. The results indicate that, even under persistent conflict conditions, exposure significantly reduces firm sales and the propensity to invest, with the magnitude of the sales effect aligning with prior literature. A key mechanism driving this outcome is conflict-induced power outages, which exhibit an elasticity close to unity and account for roughly one-third of the overall impact of conflict exposure on sales in the West Bank and Gaza. Additionally, smaller firms tend to de-prioritize concerns over taxation and corruption under conflict exposure, whereas larger firms and exporters maintain these concerns and place greater emphasis on access to finance and political instability, respectively.

Suggested Citation

  • Deng, Jingyuan & Mele, Gianluca, 2026. "Conflicts and Firm Outcomes : Evidence from the West Bank and Gaza over the Last Decade (2016–25)," Policy Research Working Paper Series 11335, The World Bank.
    • Handle: RePEc:wbk:wbrwps:11335
    as

    Download full text from publisher

    File URL: https://documents.worldbank.org/curated/en/099843003182629353/pdf/IDU-77e40bf7-6259-4786-a85b-e64be0dfb5c8.pdf
    Download Restriction: no
    ---><---

    More about this item

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wbk:wbrwps:11335. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Roula I. Yazigi (email available below). General contact details of provider: https://edirc.repec.org/data/dvewbus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.