This article examines The Political Economy of Refugee Hosting: Economic Benefits, Social Tensions, and Policy Trade-Offs: Political Economy Dimensions with a focused emphasis on Eritrea within the field of Political Science. It is structured as a action research study that organises the problem, the strongest verified scholarship, and the main analytical implications in a concise publication-ready format. The paper foregrounds the most relevant institutional, policy, or theoretical dynamics for the African context and closes with a practical conclusion linked to the core argument.