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The Effectiveness of Aid under Post-Conflict Conditions: A Sector-Specific Analysis

Author

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  • Julian Donaubauer
  • Dierk Herzer
  • Peter Nunnenkamp

Abstract

It is widely believed that foreign aid may help conflict-affected countries to recover after the termination 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

  • Julian Donaubauer & Dierk Herzer & Peter Nunnenkamp, 2019. "The Effectiveness of Aid under Post-Conflict Conditions: A Sector-Specific Analysis," Journal of Development Studies, Taylor & Francis Journals, vol. 55(4), pages 720-736, April.
    • Handle: RePEc:taf:jdevst:v:55:y:2019:i:4:p:720-736
    DOI: 10.1080/00220388.2017.1400013
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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.
    2. Dreher, Axel & Lang, Valentin & Reinsberg, Bernhard, 2024. "Aid effectiveness and donor motives," World Development, Elsevier, vol. 176(C).
    3. Opršal, Zdeněk & Nováková, Tereza & Harmáček, Jaromír & Pánek, Jiří & Avdić, Boris, 2025. "Foreign aid in a divided country: Subnational aid allocations in post-conflict Bosnia and Herzegovina," World Development, Elsevier, vol. 195(C).
    4. Yoon S. Hur & Baran Han, 2024. "Aid modality and growth under post-conflict conditions," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 160(2), pages 657-674, May.

    More about this item

    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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