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

Anda David (), Mohamed Marouani (), Charbel Nahas and Björn Nilsson ()
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Charbel Nahas: Former Minister of Labor and Telecom, Lebanon

No DT/2018/14, Working Papers from DIAL (Développement, Institutions et Mondialisation)

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.

Keywords: labor markets; macroeconomic impacts of refugees; Syrian crisis; Lebanon (search for similar items in EconPapers)
JEL-codes: E17 F22 J15 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-ara, nep-mac and nep-mig
Date: 2018-10
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Working Paper: The Economics of the Syrian Refugee Crisis in Neighboring Countries. The Case of Lebanon (2018) Downloads
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