Aid, policy and growth in post-conflict societies

Collier, Paul; Hoeffler, Anke

Aid, policy and growth in post-conflict societies

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Date

2004

Authors

Collier, Paul

Hoeffler, Anke

DOI (citable link)

10.1016/j.euroecorev.2003.11.005

Collections

Politik- und Verwaltungswissenschaft

Publication type

Journal article

Publication status

Published

Published in

European Economic Review ; 48 (2004), 5. - pp. 1125-1145. - ISSN 0014-2921. - eISSN 1873-572X

Abstract

Countries emerging from civil war attract both aid and policy advice. This paper provides the first systematic empirical analysis of aid and policy reform in the post-conflict growth process. It is based on a comprehensive data set of large civil wars, and covers 17 societies that were in their first decade of post-conflict economic recovery. We first investigate whether the absorptive capacity for aid is systematically different in post-conflict countries. We find that during the 3 post-conflict years absorptive capacity is no greater than normal, but that in the rest of the first decade it is approximately double its normal level.Thus, ideally, aid should phase in during the decade. Historically, aid has not, on average, been higher in post-conflict societies, and indeed it has tended to taper out over the course of the decade. We then investigate whether the contribution of policy to growth is systematically diffrent in post-conflict countries, and in particular, whether particular components of policy are differentially important. For this we use the World Bank policy rating database. We find that growth is more sensitive to policy in post-conflict societies. Comparing the efficacy of different policies, we find that social policies are differentially important relative to macroeconomic policies. However, historically, this does not appear to have been how policy reform has been prioritized in post-conflict societies.

Subject (DDC)

320 Politics

Keywords

Aid, Growth,Civil war

Cite This

ISO 690

COLLIER, Paul, Anke HOEFFLER, 2004. Aid, policy and growth in post-conflict societies. In: European Economic Review. 48(5), pp. 1125-1145. ISSN 0014-2921. eISSN 1873-572X. Available under: doi: 10.1016/j.euroecorev.2003.11.005

BibTex

@article{Collier2004-10polic-46443,
  year={2004},
  doi={10.1016/j.euroecorev.2003.11.005},
  title={Aid, policy and growth in post-conflict societies},
  number={5},
  volume={48},
  issn={0014-2921},
  journal={European Economic Review},
  pages={1125--1145},
  author={Collier, Paul and Hoeffler, Anke}
}

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Bibliography of Konstanz

No

Refereed

Yes