This study examined the effects of joint academic study involving minority students from the Bedouin population in Israel with the general population on out-group and in-group trust. Using a modified version of the trust game as a serial game with complete information and 135 students from both populations in a joint academic programme, we found that the level of trust of the Bedouin students towards the general population decreases over time, despite their having assimilated into this group. We discuss the theoretical explanations and implications of this result, along with practical recommendations for introducing complementary steps to enhance trust over time between the two populations. The latter includes creating more social and academic encounters between the groups and offering better incentives for cross-sector collaboration. This study is the first to examine the development of trust over time in academia between different ethnic groups while the groups are in national conflict.

This paper investigates how democracy influences economic growth through innovation and institutional quality. Using an augmented Solow growth model and panel-data mediation analysis across 123 countries (2011–2022), we quantify democracy’s impact on GDP per capita. Our results show that institutional quality accounts for 83.3% of democracy’s total effect on economic output, while innovation explains only 16.7%. This study contributes to the literature by distinguishing between institutional and innovation channels in the democracy–growth nexus and provides policy-relevant insights for promoting inclusive economic growth (SDG 8) and building resilient infrastructure and innovation (SDG 9).

On 7 October 2023, Israel experienced a large-scale attack, initiating the Iron Swords War (also known internationally as the 2023 Israel–Hamas War). This protracted armed conflict profoundly disrupted social and economic life in Israel and the region. This study investigates the psychological distress of small business owners in the aftermath of this terrorist assault and during the ensuing conflict. Drawing on a nationwide survey of 363 entrepreneurs, we applied a two-stage higher-order PLS-SEM model to examine how economic stressors, psychological and institutional resources, and demographic factors shaped distress. The findings reveal that uncertainty and revenue loss intensified distress, while resilience, hope, and trust in government operated as protective resources, with notable gender differences also observed. Beyond its economic and psychological relevance, the study situates entrepreneurial distress within a broader public health perspective, viewing the mental health and well-being of small business owners as integral to community resilience, social stability, and national recovery during crises. By framing entrepreneurial distress and resilience as key determinants of population mental health and collective well-being, this research underscores how supporting entrepreneurs contributes to wider health promotion and psychosocial recovery efforts. Overall, the study offers a novel multidimensional empirical analysis of entrepreneurial distress during armed conflict, underscoring the psychological mechanisms through which terrorism and its aftermath affect small business owners, and highlighting the need for resilience-building and institutional support to mitigate mental health burdens.