Fueling Conflict? (De)Escalation and Bilateral Aid

Autor: Bluhm, Richard, Gassebner, Martin, Langlotz, Sarah, Schaudt, Paul
Rok vydání: 2016
Předmět:
Zdroj: Journal of Applied Econometrics 36 (2021), Nr. 2
Journal of Applied Econometrics
KOF Working Papers, 412
Journal of Applied Econometrics, 36 (2)
ISSN: 0883-7252
1099-1255
0021-8901
1365-2664
DOI: 10.11588/heidok.00021941
Popis: This paper studies the effects of bilateral foreign aid on conflict escalation and deescalation. First, we develop a new ordinal measure capturing the two‐sided and multifaceted nature of conflict. Second, we propose a dynamic ordered probit estimator that allows for unobserved heterogeneity and corrects for endogeneity. Third, we identify the causal effect of foreign aid on conflict by predicting bilateral aid flows based on electoral outcomes of donor countries which are exogenous to recipients. Receiving bilateral aid raises the chances of escalating from small conflict to armed conflict, but we find little evidence that aid ignites conflict in truly peaceful countries.
Journal of Applied Econometrics, 36 (2)
ISSN:0883-7252
ISSN:1099-1255
ISSN:0021-8901
ISSN:1365-2664
Databáze: OpenAIRE