How wealth of nations interact with aid and peace: A time and country variant analysis

Shahriar Kibriya, Yu Zhang, David Bessler () and Edwin Price

No 235859, 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts from Agricultural and Applied Economics Association

Abstract: By using panel VAR model and directed acyclic graphs (DAGs), we explore the dynamic interdependences among aid, development, and conflict. We construct a worldwide panel dataset of 79 countries over the period 1995-2010. Although foreign aid is sensitively responsive to the conflict or development shock, its effects on reducing conflict and improving development are largely relied on the wealth level and conflict proneness of the recipient country. We find that foreign aid only mitigates conflict in middle income developing countries, and enhances the development of the poor and conflict-prone countries.

Keywords: International; Development (search for similar items in EconPapers)
Pages: 34
Date: 2016-08-02
New Economics Papers: this item is included in nep-dev
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Persistent link: https://EconPapers.repec.org/RePEc:ags:aaea16:235859

DOI: 10.22004/ag.econ.235859

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