MIGRATIONS AND ECONOMY: UNDERSTANDING DISPLACEMENT DRIVEN ECONOMIES

Abstract

Displacement creates complex social and economic challenges between displaced and host communities but also new opportunities for integration. This study examines the economic participation of displaced populations in Tehsil Razar, District Swabi, Khyber Pakhtunkhwa, Pakistan, arguing that it has evolved into a displacement-driven economy. Based on 30 semi-structured interviews with traders, farmers, landowners, elders, and officials, findings show Afghan refugees dominate trade while internally displaced persons sustain agricultural labor. Despite legal and social barriers, displaced groups are vital to the local economy. The paper introduces the concept of a “displacement-led economy” with relevance to Uganda, Lebanon, Jordan, and Europe.