The economic consequences of armed conflicts in selected Eurasian countries at the turn of the 21st century

Abstract

Subject and purpose of work The subject-matter of this paper is the economic situation in selected Eurasian countries affected by armed conflict at the turn of the 21st century. The aim of the paper is to assess the strength and impact of such conflict on the economic development of the affected countries from its outbreak until 2022. Material and methods The paper is based on an analysis of selected macroeconomic indicators using the Solow–Swan model by means of the Cobb-Douglas production function. Results Armed conflict had a significant impact on the economic situation in Ukraine and Bosnia and Herzegovina, affected Croatian economy to the most insignificant extent and had a moderate impact on socio-economic development in other states. Conclusions An armed conflict manifests itself in economic collapse, capital outflow and changes in the economic structure. What should be important for states emerging from an armed conflict is the development of technology and schooling on the one hand and the stabilisation of the implementation of economic policies aimed at avoiding a similar situation in the future on the other hand.