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

Julian Donaubauer, Dierk Herzer and Peter Nunnenkamp

No 2065, Kiel Working Papers from Kiel Institute for the World Economy (IfW)

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.

Keywords: aid effectiveness; civil conflict; social infrastructure; economic infrastructure (search for similar items in EconPapers)
JEL-codes: F35 O18 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-dev
Date: 2016
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Journal Article: The Effectiveness of Aid under Post-Conflict Conditions: A Sector-Specific Analysis (2019) Downloads
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