Khadija Alaa Makki
Business and Management Department, Ishik University, Erbil, Iraq
Email: [email protected]
Doi:10.23918/icabep2018p5
(Full Paper)
Abstract
After decades of foreign aid consisting of capital transfers to developing countries and numerous empirical studies, the impact of foreign aid on growth remains questionable. The increasing recognition of short-comings in cross-country studies has created a need for more attentive case studies. Post-conflict aid is of particular significance in determining whether an external intervention can assist fragile states in their transition to stable democracies. Iraq presents a unique case study in understanding the impact of foreign aid on post-conflict countries. Its economic development, resources, and recent history compared to other reconstructions based on foreign interventions offers insights into how a military intervention followed by reconstructive assistance might take place in a country with an authoritarian history. This paper contributes to the aid, conflict, and growth literature using data from 2003 to 2013 in one of the world’s highest recipients of aid over the first decade of the 21st century. The case study includes an OLS multiple regression using the statistics software SPSS, with the hypothesis that the presence of conflict decreases the positive impact of aid on growth. The findings suggest that conflict has a negative impact on growth. However, this study did not find statistically significant evidence suggesting that the presence of conflict decreases the positive impact of aid on growth. “History will judge the war against Iraq not by the brilliance of its military execution, but by the effectiveness of its post-hostilities activities.”
ISBN 978-0-9962570-9-1
Faculty of Administrative Sciences and Economics
Tishk International University
