 Does aid cause conflict in Pakistan?Nadia Tahir () Defence and Peace Economics, 2017, vol. 28, issue 1, 112-135 Abstract: This study provides evidence from Pakistan on how the delegated task of achieving strategic objectives of the donor can lead to incompatibility of aid objectives which then generates perpetual and multidimensional domestic conflict in the recipient society. We use count data method to estimate the relationship between aid and conflict. At the aggregate level, social sector spending, regime change and youth bulge are positively and significantly related with conflict. However, aid per capita gives ambiguous results. It is significant with conflict count in the terrorism data-set and insignificant for data on armed conflict. Inclusion of youth bulge and unemployment rate confirms the marginalization hypothesis of conflict. Inflation rate and the tax variables are insignificant. This confirms that aid erodes fiscal capacity. At project-level data, conflict is strongly related with aid commitment and purpose. Discrepancy in aid allocation and commitment may accentuate conflict. Date: 2017 Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:taf:defpea:v:28:y:2017:i:1:p:112-135 Ordering information: This journal article can be ordered from DOI: 10.1080/10242694.2014.1000007 Access Statistics for this article Defence and Peace Economics is currently edited by Professor Keith Hartley More articles in Defence and Peace Economics from Taylor & Francis Journals |
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