Nation Building as a Determinent of Economic Growth
Abstract
Nation building, the simultaneous allocation of economic aid and military assistance in conflict environments, has cost the world over $3 trillion in the last half century. This project uses a theoretically-based empirical model to quantify the effect of nation building initiatives on GDP per capita growth. The research considers how the characteristics of conflict zones and the interaction of diverse types of both military assistance and economic aid impact the development process. The primary results suggest a 1% increase in spending on nation building results in a .8% increase in economic growth. Nation building s positive impact increases when countries or organizations initiate operations in order to provide humanitarian assistance or ensure a balance of power. Further, nation building operations which include economic grants targeted towards infrastructure development, agriculture, water, and sanitation show the largest marginal effect on economic growth. Once a conflict ends, however, the model predicts that continued military operations coupled with economic aid harms the post conflict economy. The results hold whether a single country or a multilateral group performs the operation.
Document Details
- Document Type
- Technical Report
- Publication Date
- May 18, 2010
- Accession Number
- ADA549032
Entities
People
- Ellyn A. Creasey
Organizations
- United States Naval Academy