a column by Francesco Amodio and Michele Di Maio for VIX: CEPR’s Policy Portal
The economic impact of conflict can be catastrophic, but disentangling and identifying the different ways in which conflict affects the economy is challenging.
Using data from the Occupied Palestinian Territory during the Second Intifada, this column examines the specific mechanisms through which economic losses materialise in a conflict zone with low-intensity violence.
The findings highlight the close interaction between security and trade issues, calling for an integrated policy approach acting on both fronts.
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