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The Economics of Post Conflict Aid

Author

Listed:
  • Mr. James McHugh
  • Mr. Theodora Kosma
  • Mr. Dimitri G Demekas

Abstract

Post conflict aid is different from conventional development aid and has different effects on the recipient economy. The paper builds a theoretical model tailored around the main stylized facts of post conflict aid and traces the impact of different kinds of post-conflict aid on capital accumulation, growth, welfare, and resource allocation. While both humanitarian and reconstruction aid are welfare-enhancing, humanitarian aid reduces long-run capital accumulation and growth. Reconstruction aid, on the other hand, may increase the long-run capital stock and, if carefully designed, avoid the pitfalls of the Dutch disease.

Suggested Citation

  • Mr. James McHugh & Mr. Theodora Kosma & Mr. Dimitri G Demekas, 2002. "The Economics of Post Conflict Aid," IMF Working Papers 2002/198, International Monetary Fund.
    • Handle: RePEc:imf:imfwpa:2002/198
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    References listed on IDEAS

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    Cited by:

    1. Venera Demukaj & Mrika Kotorri & Isa Mustafa, 2006. "Financial and Technical Assistance in the Reconstruction and Development of Post-Conflict Kosova," wiiw Balkan Observatory Working Papers 72, The Vienna Institute for International Economic Studies, wiiw.
    2. Nasery, Jawid Ahmad, 2014. "The Economic Shock to Afghanistan Caused by Aid Reduction and Troops Withdrawal," IEE Working Papers 202, Ruhr University Bochum, Institute of Development Research and Development Policy (IEE).
    3. Frances Stewart & Rachita Daga, 2017. "Does the way civil wars end affect the pattern of post-conflict development?," Oxford Development Studies, Taylor & Francis Journals, vol. 45(2), pages 145-170, April.
    4. Michael Bleaney & Arcangelo Dimico, 2011. "The Intensity of Conflict, Growth and Post-Conflict Recovery," Discussion Papers 11/03, University of Nottingham, CREDIT.
    5. 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.
    6. Nunnenkamp, Peter, 2016. "Recent patterns of post-conflict aid: Did donors help sustain peace?," Kiel Working Papers 2043, Kiel Institute for the World Economy (IfW Kiel).
    7. Binetti, Marco Nicola, 2023. "Rebuilding energy infrastructures and the manufacturing sector in post-conflict countries," Energy Policy, Elsevier, vol. 172(C).
    8. repec:unu:wpaper:wp2012-07 is not listed on IDEAS
    9. Dimico, Arcangelo, 2013. "The Evolution of Conflict and Effectiveness of Aid," MPRA Paper 47050, University Library of Munich, Germany.

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    Keywords

    WP; capital stock;

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