UN Peacekeeping Operations : How do UN peacekeeping missions affect the host country’s economy?

Sammanfattning: In this thesis we aim to examine the economic impact of peacekeeping provided by the United Nations (UN) in conflict-affected countries around the globe. The main interest of this thesis is to estimate the possible economic impact that UN peacekeeping operations may have had on conflict-affected countries’ economies between 1989-2019. We aim to do this by investigating if there is a positive causal relationship between UN peacekeeping operation (PKO) and GDP/capita. This is done by examining previous research and conducting an empirical analysis using a difference-in-differences method. Our model examines the change in GDP/capita levels for both a treatment and non-treatment group, defining PKO as treatment. Data on the conflicts, UN peacekeeping operations and other relevant variables was collected from well-established open sources. The results imply that PKO has a positive impact on GDP/capita development, but that the effect most likely goes through the effect that PKO has on our mediator variables, that in turn positively affect GDP levels. Furthermore, our results indicate that the size of the mission, in terms of military strength, does seem to increase the economic effect.