American Economic Review
ISSN 0002-8282 (Print) | ISSN 1944-7981 (Online)
The Economic Costs of Conflict: A Case Study of the Basque Country
American Economic Review
vol. 93,
no. 1, March 2003
(pp. 113–132)
Abstract
This article investigates the economic effects of conflict, using the terrorist conflict in the Basque Country as a case study. We 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, we use the 1998-1999 truce as a natural experiment. We find that stocks of firms 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.Citation
Abadie, Alberto, and Javier Gardeazabal. 2003. "The Economic Costs of Conflict: A Case Study of the Basque Country ." American Economic Review, 93 (1): 113–132. DOI: 10.1257/000282803321455188JEL Classification
- D74 Conflict; Conflict Resolution; Alliances