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The Economics of the Syrian Refugee Crisis in Neighboring Countries. The Case of Lebanon

Anda David (), Mohamed Marouani (), Charbel Charbel and Björn Nilsson ()

No 1249, Working Papers from Economic Research Forum

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.

New Economics Papers: this item is included in nep-ara and nep-mig
Date: 2018-11-07, Revised 2018-11-07
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