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Armed Conflict and Firm Performance: Evidence From the 2008 Georgia‐Russia Conflict

Helena Schweiger

Economics of Transition and Institutional Change2026https://doi.org/10.1111/ecot.70022article
AJG 2ABDC A
Weight
0.50

Abstract

This paper examines how a brief armed conflict affects firm performance and survival, using evidence from Georgia following the August 2008 war. Combining firm‐level survey data with geolocated information on conflict events, military installations and bank branches, the analysis reveals heterogeneous firm responses. In the short run, firms located near conflict events experienced smaller declines in sales and sales per permanent, full‐time employee than nonexposed firms, despite substantial losses among young firms and exporters closest to the bombing. By 2011, surviving exposed firms outperformed nonexposed survivors in sales and labour productivity. At the same time, local armed conflict exposure increased firm exit, particularly among exporters, pointing to selective exit, reduced competition and transport disruptions as mechanisms driving the results.

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https://doi.org/https://doi.org/10.1111/ecot.70022

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@article{helena2026,
  title        = {{Armed Conflict and Firm Performance: Evidence From the 2008 Georgia‐Russia Conflict}},
  author       = {Helena Schweiger},
  journal      = {Economics of Transition and Institutional Change},
  year         = {2026},
  doi          = {https://doi.org/https://doi.org/10.1111/ecot.70022},
}

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Armed Conflict and Firm Performance: Evidence From the 2008 Georgia‐Russia Conflict

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Evidence weight

0.50

Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40

F · citation impact0.50 × 0.4 = 0.20
M · momentum0.50 × 0.15 = 0.07
V · venue signal0.50 × 0.05 = 0.03
R · text relevance †0.50 × 0.4 = 0.20

† Text relevance is estimated at 0.50 on the detail page — for your query’s actual relevance score, open this paper from a search result.