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Spatial Propagation of the Economic Impacts of Bombing: The Case of the 2006 War in Lebanon

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  • Haddad Eduardo Amaral

    (Departamento de Economia – FEA, NEREUS – The University of Sao Paulo Regional and Urban Economics Lab, Av. Prof. Luciano Gualberto, 908, FEA I, 05508–900 – Cidade Universitária, São Paulo, Brasil)

  • Okuyama Yasuhide

    (Graduate School of Social System Studies, University of Kitakyushu, Kitakyushu, Japan)

Abstract

This paper assesses the economic effects of the July 2006 War in Lebanon. We estimate the economy-wide impacts on the Lebanese regions resulting from the reduction of physical capital stocks using the estimated damages associated with the bombing events. In doing that, we are able to derive the estimates of the short-run economic costs of the War related to the structural break in the availability of economic infrastructure in the country. A discussion on resiliency is also introduced showing how the lack of redundancy in the country’s infrastructure is associated with stronger higher-order negative effects. Moreover, we show how international trade can act as a shock absorber.

Suggested Citation

  • Haddad Eduardo Amaral & Okuyama Yasuhide, 2016. "Spatial Propagation of the Economic Impacts of Bombing: The Case of the 2006 War in Lebanon," Review of Middle East Economics and Finance, De Gruyter, vol. 12(3), pages 225-256, December.
    • Handle: RePEc:bpj:rmeecf:v:12:y:2016:i:3:p:225-256:n:4
    DOI: 10.1515/rmeef-2016-0035
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    Cited by:

    1. Leonie Wenz & Sven Norman Willner & Robert Bierkandt & Anders Levermann, 2014. "Acclimate—a model for economic damage propagation. Part II: a dynamic formulation of the backward effects of disaster-induced production failures in the global supply network," Environment Systems and Decisions, Springer, vol. 34(4), pages 525-539, December.
    2. Robert Bierkandt & Leonie Wenz & Sven Norman Willner & Anders Levermann, 2014. "Acclimate—a model for economic damage propagation. Part 1: basic formulation of damage transfer within a global supply network and damage conserving dynamics," Environment Systems and Decisions, Springer, vol. 34(4), pages 507-524, December.

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    More about this item

    Keywords

    Middle East; Lebanon; disasters; July 2006 War; impact analysis; resiliency;
    All these keywords.

    JEL classification:

    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • R13 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General Equilibrium and Welfare Economic Analysis of Regional Economies

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