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American Economic Review: Vol. 102 No. 3 (May 2012)

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Nation Building and Economic Growth

Article Citation

Creasey, Ellyn, Ahmed S. Rahman, and Katherine A. Smith. 2012. "Nation Building and Economic Growth." American Economic Review, 102(3): 278-82.

DOI: 10.1257/aer.102.3.278

Abstract

Over the past half-century there have been over three hundred instances of nation building initiatives, episodes where countries jointly give military and economic aid to a country embroiled in conflict. Despite the prevalence and expense of this foreign policy, little research has explored the potential growth effects from these operations. This project uses a standard growth regression framework to quantify the effects of nation building on GDP per capita growth of the recipient nation. The research considers how the characteristics of conflict zones and the interaction of diverse types of both military and economic aid impact the development process.

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Authors

Creasey, Ellyn (US Navy)
Rahman, Ahmed S. (US Naval Academy, Annapolis)
Smith, Katherine A. (US Naval Academy, Annapolis)

JEL Classifications

O47: Measurement of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
F35: Foreign Aid
H56: National Security and War
O17: Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
O43: Institutions and Growth


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