The Benefits and Costs of Resource Mobility between a Christian and a Moslem Region during the Lebanese War

Abstract

This study models the situation of resource endowments during the war in Lebanon (1975/ 91). It is quite clear that Lebanon was somewhat segregated into two regions: a mostly "Christian", or better, an Eastern one, and a mostly "Moslem", or better, a Western one. The East is assumed for the purpose of this study to be endowed with capital and labor, and to export capital to the West. The latter is assumed to be endowed with labor and land, and to export labor to the East. This characterization, although crude and perhaps subject to criticism, provides many insights on the benefits and costs of labor and capital mobility between the two regions during a peculiar part of the economic history of Lebanon.