Economic Implications of Maritime and Territorial Disputes

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Territorial and maritime disputes continue to figure prominently in international affairs. These are not simply limited to the political sphere, given their economic ramifications. Drawing on studies on the economics of conflict, this paper examines an array of economic costs associated with territorial and maritime disputes. These include adverse effects on certain economic and development outcomes arising from possible armed confrontation, with some of these possibly lingering in the aftermath of conflict. There are also costs associated with territorial disputes per se, emphasizing how these disputes also have implications on the livelihoods of resource users in the disputed areas. A clearer understanding of these economic links could help inform and motivate policymakers on mitigating the risks of conflict.