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<p>Amid escalating geopolitical tensions, we offers insights into the far-reaching consequences of wars. Based on a new dataset on major conflicts since 1870, the findings show that wars cause a substantial decline in GDP and spike in inflation within war zones. Interestingly, countries geographically close to war zones experience significant economic disruptions, even when neutral to the conflict, whereas countries far from the conflict may see minimal to slightly positive spillovers. The study demonstrates how wars represent a massive negative supply shock, with geographical proximity and trade integration explaining the varying effects on different countries.</p>
</abstract>

Amid escalating geopolitical tensions, we offers insights into the far-reaching consequences of wars. Based on a new dataset on major conflicts since 1870, the findings show that wars cause a substantial decline in GDP and spike in inflation within war zones. Interestingly, countries geographically close to war zones experience significant economic disruptions, even when neutral to the conflict, whereas countries far from the conflict may see minimal to slightly positive spillovers. The study demonstrates how wars represent a massive negative supply shock, with geographical proximity and trade integration explaining the varying effects on different countries.

The Price of War

Wirtschaftsdienst

This work is licensed under the Creative Commons Attribution 4.0 International License.

Ökonomische Folgen: Was Kriege die Welt kosten

Amid escalating geopolitical tensions, we offers insights into the far-reaching consequences of wars. Based on a new dataset on major conflicts since 1870, the...

The Price of War

Published Online: Apr 20, 2024

Page range: 283 - 286

DOI: https://doi.org/10.2478/wd-2024-0075

© 2024 Jonathan Federle et al., published by Sciendo

This work is licensed under the Creative Commons Attribution 4.0 International License.