The economic effect of a resolution of the Nagorno-Karabakh conflict on Armenia and Azerbaijan
The Nagorno-Karabakh conflict is a long-simmering conflict between Armenia and Azerbaijan over the national affiliation of the Nagorno-Karabakh region in the South Caucasus. In addition to the humanitarian and political consequences, the conflict situation is also causing economic distortions. The economic effects of a conflict settlement are examined in more detail in this study.
Military conflicts always have an economic impact, as they tie up resources in unproductive areas, can affect interstate trade and prevent investment. It is therefore obvious that conflict resolution may be highly desirable not only for humanitarian and political reasons, but also from an economic point of view.
An end to the long-running conflict over Nagorno-Karabakh could thus be of great importance for the economies of Armenia and Azerbaijan. In order to evaluate these effects in more detail, the study attempts to quantify the economic effects of a peace agreement.