Survey of Economic Implications of Maritime and Territorial Disputes

22 Pages Posted: 28 May 2020

See all articles by Ronald U. Mendoza

Ronald U. Mendoza

Ateneo De Manila University - Ateneo School of Government

Charles Siriban

Asian Institute of Management - Policy Center

Tea Jalin Ty

Ateneo de Manila University

Date Written: July 2019

Abstract

Drawing on studies on the economics of conflict, this paper reviews the literature on maritime and territorial disputes; and it examines an array of economic implications 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 various economic disruptions and costs associated with these disputes, emphasizing how they also affect 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. Based on the review of evidence herein, the economic implications of conflict in terms of foregone average trade among the country pairs considered in the West Philippine Sea/South China Sea (in 1985 dollars) – which differ in important ways but hint at some common channels of impact – could range from US$ 909.3 million to US$ 98.8 billion. More broadly, the impacts on a disrupted global production chain can easily amplify these results even further, affecting global growth prospects for many decades, according to experience.

Keywords: Maritime and territorial disputes, South China Sea

Suggested Citation

Mendoza, Ronald U. and Siriban, Charles and Ty, Tea Jalin, Survey of Economic Implications of Maritime and Territorial Disputes (July 2019). Journal of Economic Surveys, Vol. 33, Issue 3, pp. 1028-1049, 2019, Available at SSRN: https://ssrn.com/abstract=3608916 or http://dx.doi.org/10.1111/joes.12311

Ronald U. Mendoza (Contact Author)

Ateneo De Manila University - Ateneo School of Government ( email )

Katipunan Road
Loyola Heights
Quezon City, 1108
Philippines

Charles Siriban

Asian Institute of Management - Policy Center ( email )

Eugenio Lopez Foundation Bldg
Joseph McMicking Campus, 123 Paseo de Roxas
Makati City, Metro Manila
Philippines

Tea Jalin Ty

Ateneo de Manila University

Katipunan Ave
Quezon City, 1108
Philippines

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