We are witnessing a return of international wars and conflicts, with enormous economic consequences. The number of conflicts worldwide is at the highest level since World War II, and an increasing share of these conflicts are internationalised and have a cross-border dimension.
This theme will highlight the following topics:
- Impact of geoeconomics on developing countries. Developing countries might suffer from spillover effects of conflicts, for instance through less internationalised trade or through the disrupt of global supply chains. This might affect both economic perspectives and conflict risks.
- Globalisation and the likelihood of war. More evidence is needed to answer questions such as: Does economic connectivity cause conflict or not? What mechanisms explain the link between globalisation and war?
- The economic cost of war. Data and literature are lacking to identify and quantify the cost of war both domestically and globally; the long-run effects of a war for the attacker and the attacked; and the impact of wars on trade and globalisation.
- Foreign intervention and foreign support in conflicts and wars. Many conflicts are supported from abroad – both militarily and financially – but there is surprisingly little data or quantitative work on the topic.
- Conflicts, international migration, and refugee flows. Conflict generates both domestic and international migrants. Understanding the nature of these flows is important for policy aiming to minimise frictions due to conflict-induced migration.
- International conflicts and domestic political economy. Stimulating new work in this area can help shed light on the incentives influencing leaders at the margin of joining interstate and internationalised conflicts.
- International terrorism and counterterrorism. Extremist-religious conflict is spreading rapidly and understanding the determinants of those types of conflicts is primordial for the implementation of effective public policies.