Foreign Aid and Civil Conflict

Atin Basuchoudhary, James Bang, John David () and Tinni Sen ()
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John David: Virginia Military Institute
Tinni Sen: Virginia Military Institute

Chapter Chapter 6 in Identifying the Complex Causes of Civil War, 2021, pp 75-87 from Springer

Abstract: Abstract We focus on the effect of foreign aid on civil conflict because this is a well-trodden path in the conflict literature. We find that net secondary income increases conflict risk only for a specific range for that variable. Our finding suggests that there should be greater theoretical scrutiny for why only a small range of values for net secondary income increases the risk of conflict. We believe a game-theoretic approach models the interaction between donors and recipients to identify such equilibrium switches. Moreover, the sort of aid reflected in the current account may matter more than a broader definition of aid. Last we suggest that neither military aid nor foreign direct investment appears to have a causal impact on civil conflict, with important implications for policy.

Keywords: Net secondary income; Foreign aid; Strategic interactions and equilibrium switches; Foreign aid and peace policy (search for similar items in EconPapers)
Date: 2021
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Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-3-030-81993-4_6

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DOI: 10.1007/978-3-030-81993-4_6

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