THE RELATIONSHIP BETWEEN POSTWAR RECONSTRUCTION CONTRACTS AND POLITICAL DONATIONS: THE CASE IN AFGHANISTAN AND IRAQ

Abstract

This research examines the relationship between postwar reconstruction contracts in Iraq and Afghanistan and subsequent federal – level election campaign contributions using a case control design. The cases represent all companies that received postwar contracts and are matched with a random sample of companies that did not receive postwar contracts. Regression results suggest that, even after controlling for previous federal-level election campaign contributions and company characteristics, postwar contracts in Iraq and Afghanistan that were awarded between 2002 and 2004 predict campaign contributions for the 2004 presidential and congressional elections. These results are discussed in the context of literature on the rationality of political donations and indicate that corporate donors appear to behave in a rational manner.

Notes

¹For a more complete review of this research see Appollonio and La Raja (2004).

∗p < .05

∗∗p < .01, two-tailed.

^a Utilizing the method recommended by Paternoster and colleagues (1998) we tested the difference between the regression coefficients in the contracts variable for Democrats and Republicans. The results did not indicate a significant difference at the p < .05 level (Z = 1.41; p = .14).

²Following the analytic method suggested by Baron and Kenny (1986) we estimated several other models to determine if receiving a postwar contract had an intervening or mediating relationship with political donation in 2000 and 2004. We found no significant evidence suggesting that an intervening or mediating relationship exists.

³For definitions see Chambliss (1989), Clinard and colleagues (1994), Friedrichs (1996), Kramer et al. (2002), and Simon (2002).