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The Economics of Post Conflict Aid

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...

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Bibliographic Details
Main Author: McHugh, James
Other Authors: Kosma, Theodora, Demekas, Dimitri
Format: eBook
Language:English
Published: Washington, D.C. International Monetary Fund 2002
Series:IMF Working Papers
Subjects:
Capital Accumulation
Wealth
Investment
International Relief
Labour; Income Economics
Saving
Exports And Imports
Intangible Capital
International Economics
Demand And Supply Of Labor: General
Labor
Labor Supply
Saving And Investment
Consumption; Economics
Development Assistance
Foreign Aid
Investments: General
Consumption
Labor Market
Macroeconomics
Macroeconomics: Consumption
Capacity
Capital
Online Access:
Collection: International Monetary Fund - Collection details see MPG.ReNa
Description
Summary: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
Physical Description:36 pages
ISBN:9781451860078

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