Did the Aid Boom Pacify Sub-Saharan Africa?: Ex-Post Evaluation Using a Near-Identification Approach

Jean-Paul Azam () and Véronique Thelen

No 14-544, TSE Working Papers from Toulouse School of Economics (TSE)

Abstract: The incidence of civil war in Sub-Saharan Africa since the turn of the century is less than half of what it was on average in the last quarter of the 20th century. This paper shows that the aid boom triggered by 9/11 played a key role in achieving purposefully this result using panel data for 46 African countries over four decades. It applies a nearidentification approach to test the aid-conflict trade-off, taking due account of asymmetric information between the donors and the econometrician. Preference proxies are used in the first-stage to elicit the relevant hidden information.

Keywords: Foreign Aid; Africa; Civil Wars (search for similar items in EconPapers)
JEL-codes: F35 N47 P45 (search for similar items in EconPapers)
Date: 2014-12, Revised 2019-06
New Economics Papers: this item is included in nep-dev and nep-his
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Persistent link: https://EconPapers.repec.org/RePEc:tse:wpaper:28857

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