Society

The impact of armed conflict on economic performance and enterprise value in the country

Economic Annals-XXI

Economic Annals-ХХI: Volume 182, Issue 3-4, Pages: 49-55

Citation information:
Frolov, Yu., & Bosenko, T. (2020). The impact of armed conflict on economic performance and enterprise value in the country. Economic Annals-XXI, 182(3-4), 49-55. doi: https://doi.org/10.21003/ea.V182-06

View Full-TextDownload PDF

Yury Frolov
D.Sc. (Economics),
Associate Professor,
Professor of the
Department of Informatics, Management and Technology,
Moscow City Pedagogical University
28 Sheremetyevskaya Str., Moscow, 129594, Russia
jury_frolov@mail.ru
ORCID ID: https://orcid.org/0000-0001-8364-9224

Timur Bosenko
PhD (Engineering),
Associate Professor of the
Department of Informatics, Management and Technology,
Moscow City Pedagogical University
28 Sheremetyevskaya Str., Moscow, 129594, Russia
bosenko@bmstu.ru
ORCID ID: https://orcid.org/0000-0002-8587-5863

The impact of armed conflict on economic performance and enterprise value in the country

Abstract. The intensity of armed conflicts has peaked in the past 30 years over the past two centuries. The problems of war emergence affect not only social indicators, but also economic and legal aspects of existence of enterprises within the framework of unstable situation in the country. Even in such a difficult time, enterprises at various levels are trying to develop despite the falling economic and social indicators of the local economy. Over time, in places where local armed conflicts have turned into frozen ones (e.g. Transnistria, Gaza Strip, Syria), enterprises have learned to exist in unstable conditions, forming new strategies and reactions to events.

Before the World War II, researchers did not question that there was a connection between the decline in the economic performance of enterprises and the conduct of war or armed conflict in a country. However, the number of studies on this issue is small, which makes this paper relevant in the process of studying the issue. The analysis of experience of functioning of business in conditions of war can be useful for thec enterprises of various industries. The purpose of the paper consists in research of influence of local armed conflicts on cost of the enterprises in the country.

Keywords: Armed Conflict; Frozen Conflict; Economic Performance; Enterprise Value; Business

JEL Classification: N10; N90; O14; H56

Acknowledgements and Funding: The authors received no direct funding for this research.

Contribution: The authors contributed equally to this work.

DOI: https://doi.org/10.21003/ea.V182-06

References

  1. Angstrom, J. (2003). Introduction. In J. Angstrom, & I. Duyvesteyn (Eds.). The Nature of Modern War: Clausewitz and his Critics Revisited. Stockholm: Department of War Studies, Swedish National Defence College.
  2. Chojnacki, S. (2006). Anything new or more of the same? Wars and military intervention in the international system 1946-2003. Global Society, 20(1), 25-46.
    doi: https://doi.org/10.1080/13600820500405442
  3. Cooley, H., & Gleick, P. H. (2011). Climate-proofing transboundary water agreements. Hydrological Sciences Journal, 56(4), 711-718.
    doi: https://doi.org/10.1080/02626667.2011.576651
  4. Gleditsch, N. P., Furlong, K., Hegre, H., Lacina, B., & Owen, T. (2006). Conflicts over shared rivers: Resource scarcity or fuzzy boundaries? Political Geography, 25(4), 361-382.
    doi: https://doi.org/10.1016/j.polgeo.2006.02.004
  5. Gleick, P. H. (1994). Water, War, & Peace in the Middle East. Environment: Science and Policy for Sustainable Development, 36(3), 6-12.
    doi: https://doi.org/10.1080/00139157.1994.9929154
  6. Goldin, C., & Olivetti, C. (2013). Shocking Labor Supply: A Reassessment of the Role of World War II on Women’s Labor Supply. American Economic Review: Papers and Proceedings, 103(3), 257-262.
    Retrieved from https://www.aeaweb.org/articles?id=10.1257/aer.103.3.257
  7. Henderson, E., & Singer, J. (2002). «New wars» and rumours of «new wars». International Interactions, 28(2), 165-190.
    doi: https://doi.org/10.1080/03050620212098
  8. Lacina, B., & Gleditsch, N. P. (2005). Monitoring trends in global combat: A new dataset of battle deaths. European Journal of Population, 21, 145-166.
    doi: https://doi.org/10.1007/s10680-005-6851-6
  9. Skaf, M., & Mathbout, S. (2010). Drought changes over last five decades in Syria. In A. López-Francos (Ed.). Economics of Drought and Drought Preparedness in a Climate Change Context, Mediterranean Seminars, 95, (pp. 107-112). CIHEAM.
  10. Mellow, P. A. (2010). Review article: In search of new wars: The debate about the transformation of war. European Journal of International Relations, 16(2), 297.
    doi: https://doi.org/10.1177/1354066109350053
  11. Melunder, E., Öberg, M., & Hall, J. (2009). Are «New Wars» More Atrocious? Battle Severity, Civilians Killed and Forced Migration Before and After the End of the Cold War. European Journal of International Relations, 15(3), 505-536.
    doi: https://doi.org/10.1177/1354066109338243
  12. Mundy, J. (2011). Deconstructing civil wars: Beyond the new wars debate. Security Dialogue, 42(3), 279-295.
    doi: https://doi.org/10.1177/0967010611405378
  13. Huntington, S. P. (2005). Arms races: prerequisites and results. In R. K. Betts (Ed.). Conflict after the war on terror. London: Pearson Longman.
  14. Stracan, H., & Herbheg-Rothe, A. (2019). Clausewitz and the twenty first century. Oxford: Oxford University Press.
  15. RBC. (2019). Estimates of countries defense spending, including the share in GDP criterion (according to SIPRI).
    Retrieved from https://www.rbc.ru/photoreport/29/04/2019/5cc6b6a39a794778cb08ae63

Received 11.01.2020
Received in revised form 22.02.2020
Accepted 27.02.2020
Available online 15.04.2020

View Full-TextDownload PDF
In, , , ,

More Papers