search query: @indexterm ECONOMICS / total: 4580
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| Author: | Abadie, A. Gardeazabal, J. |
| Title: | The Economic Costs of Conflict: A Case Study of the Basque Country |
| Journal: | American Economic Review
2003 : MAR, VOL. 93:1, p. 113-132 |
| Index terms: | COSTS CASE STUDIES ECONOMICS CONFLICT |
| Language: | eng |
| Abstract: | This article investigates the economic effects of conflict, using the terrorist conflict in the Basque Country as a case study. The authors find that, after the outbreak of terrorism in the late 1960's, per capita GDP in the Basque Country declined about 10 percentage points relative to a synthetic control region without terrorism. In addition, the authors use the 1998-1999 truce as a natural experiment. The authors find that stocks affirms with a significant part of their business in the Basque Country showed a positive relative performance when truce became credible, and a negative relative performance at the end of the cease-fire. Political instability is believed to have strong adverse effects on economic prosperity. |
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