Does Nation Building Spur Economic Growth?

Ellyn Creasey, EAcreasey@gmail.com, Ahmed Rahman and Katherine A. Smith ()
Additional contact information
EAcreasey@gmail.com: United States Navy
Katherine A. Smith: United States Naval Academy

Departmental Working Papers from United States Naval Academy Department of Economics

Abstract: Nation building, the simultaneous allocation of economic and military aid in con- ict environments, has cost the world trillions of dollars over the last half century. Yet few attempts have been made to quantify the potential growth eects for the recip- ient country from the provision of this aid. Using a forty-ve year panel dataset, we construct a measure of nation building using a three-way interaction term between military assistance, economic aid, and conict regime. We nd that spending on na- tion building has a positive eect on economic growth. Once conict ceases, however, continued military operations coupled with economic aid harms growth.

Pages: 45 pages
Date: 2012-01
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Citations: View citations in EconPapers (5)

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Related works:
Journal Article: DOES NATION BUILDING SPUR ECONOMIC GROWTH? (2015)
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