Essays on development economics

The studies in this thesis investigate some of the effects of humanitarian aid and the production of natural resources in developing countries. The studies suggest that these “free lunches” can have negative (unintended) consequences. Even though it achieves its goal of increasing food consumption and life expectancy, humanitarian aid can have adverse effects on government expenditure for education, health, and military purposes. Commodity exports can negatively influence the rule of law, corruption, and political stability and can crowd out other economic activities. But if properly managed windfalls resulting from aid and natural resources can improve economic conditions.