This paper presents novel firm-level evidence - based on an enterprise survey from June 2025 - on the impact of conflict exposure on firm performance in a setting characterized by chronic instability. We find that, even under persistent conflict conditions, exposure significantly reduces firm sales and propensity to invest, with the former’s magnitude being consistent with prior literature findings. We further find that a key mechanism driving this outcome is conflict-induced power outage, which exhibit an elasticity close to unity. Power outages account for roughly one third of the overall impact of conflict exposure on sales in the West Bank and Gaza. We also find that smaller firms tend to de-prioritize concerns over taxation and corruption under conflict exposure, whereas larger firms and exporters maintain these concerns and place greater emphasis on access to finance and political instability, respectively.
| Repository name | URI |
|---|---|
| Reproducible Research Repository (World Bank) | https://reproducibility.worldbank.org |
Paper exhibits were reproduced on a computer with the following specifications:
• OS: Windows 11 Enterprise, version 25H2
• Processor: Intel(R) Core(TM) Ultra 7 165U (2.10 GHz)
• Memory available: 31.5 GB
Runtime: 10 minutes.
1. Access the data: none of the datasets required to run the reproducibility package are included in the reproducibility package. Users need to gain access to the data before being able to run the entire code. See the section Datasets for more information.
2. Reproduce the programming environment or install all dependencies: Replicate the environment with the file "renv.lock" included in the reproducibility package, or manually install the packages listed at the beginning of "code.R".
3. Run the code: Run "code.R" to reproduce all results.
Since not all the data are included, the package includes the results produced in the reproducibility verification in the folder "Outputs". These can be used to review the results presented in the paper.
Some data is restricted and has not been included in the reproducibility package.
| Author | Affiliation | |
|---|---|---|
| Jingyuan Deng | University of Oxford | jingyuan.deng@economics.ox.ac.uk |
| Gianluca Mele | World Bank | gmele@worldbank.org |
2026-02-17
| Location | Code |
|---|---|
| Palestine | PSE |
The materials in the reproducibility packages are distributed as they were prepared by the staff of the International Bank for Reconstruction and Development/The World Bank. The findings, interpretations, and conclusions expressed in this event do not necessarily reflect the views of the World Bank, the Executive Directors of the World Bank, or the governments they represent. The World Bank does not guarantee the accuracy of the materials included in the reproducibility package.
| Name | URI |
|---|---|
| Modified BSD3 | https://opensource.org/license/bsd-3-clause/ |
| Name | Affiliation | |
|---|---|---|
| Gianluca Mele | World Bank | gmele@worldbank.org |
| Reproducibility WBG | World Bank | reproducibility@worldbank.org |
| Name | Abbreviation | Affiliation | Role |
|---|---|---|---|
| Reproducibility WBG | DECDI | World Bank - Development Impact Department | Verification and preparation of metadata |
2026-02-17
1