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:
Online Access:
Collection: International Monetary Fund - Collection details see MPG.ReNa
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245 0 0 |a The Economics of Post Conflict Aid  |c James McHugh, Theodora Kosma, Dimitri Demekas 
260 |a Washington, D.C.  |b International Monetary Fund  |c 2002 
300 |a 36 pages 
653 |a Capital accumulation 
653 |a Wealth 
653 |a Investment 
653 |a International relief 
653 |a Labour; income economics 
653 |a Saving 
653 |a Exports and Imports 
653 |a Intangible Capital 
653 |a International economics 
653 |a Demand and Supply of Labor: General 
653 |a Labor 
653 |a Labor supply 
653 |a Saving and investment 
653 |a Consumption; Economics 
653 |a Development assistance 
653 |a Foreign Aid 
653 |a Investments: General 
653 |a Consumption 
653 |a Foreign aid 
653 |a Labor market 
653 |a Macroeconomics 
653 |a Macroeconomics: Consumption 
653 |a Capacity 
653 |a Capital 
700 1 |a Kosma, Theodora 
700 1 |a Demekas, Dimitri 
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520 |a 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