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The effectiveness of aid under post-conflict conditions: A sector-specific analysis

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  • Donaubauer, Julian
  • Herzer, Dierk
  • Nunnenkamp, Peter

Abstract

It is widely believed that foreign aid may help conflict-affected countries to recover after the settlement of conflicts. However, the available empirical evidence supporting this view largely neglects the heterogeneous nature of aid. Drawing on the conflict database of the Uppsala Conflict Data Program, we address the hypothesis that the effectiveness of post-conflict aid differs between specific sectors. Our focus is on social and economic infrastructure which is most likely to suffer during conflict episodes so that the need for aid is particularly pressing in this area. We find fairly robust evidence that post-conflict aid is effective in improving social infrastructure. In contrast, aid appears to be ineffective in improving economic infrastructure.

Suggested Citation

  • Donaubauer, Julian & Herzer, Dierk & Nunnenkamp, Peter, 2016. "The effectiveness of aid under post-conflict conditions: A sector-specific analysis," Kiel Working Papers 2065, Kiel Institute for the World Economy (IfW Kiel).
    • Handle: RePEc:zbw:ifwkwp:2065
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    Cited by:

    1. Hur, Yoon Sun & Kim, Milim, 2020. "The Effectiveness of Development Aid to Fragile, conflict, and violence (FCV) Countries: Do Modality and Sector Matter?," 2020 Annual Meeting, July 26-28, Kansas City, Missouri 304216, Agricultural and Applied Economics Association.

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    More about this item

    Keywords

    aid effectiveness; civil conflict; social infrastructure; economic infrastructure;
    All these keywords.

    JEL classification:

    • F35 - International Economics - - International Finance - - - Foreign Aid
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure

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