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Foreign Aid and Civil Conflict

In: Identifying the Complex Causes of Civil War

Author

Listed:
  • Atin Basuchoudhary

    (Virginia Military Institute)

  • James T. Bang

    (Saint Ambrose University)

  • John David

    (Virginia Military Institute)

  • Tinni Sen

    (Virginia Military Institute)

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.

Suggested Citation

  • Atin Basuchoudhary & James T. Bang & John David & Tinni Sen, 2021. "Foreign Aid and Civil Conflict," Springer Books, in: Identifying the Complex Causes of Civil War, chapter 0, pages 75-87, Springer.
    • Handle: RePEc:spr:sprchp:978-3-030-81993-4_6
    DOI: 10.1007/978-3-030-81993-4_6
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