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The Effect of Civil War Violence on Aid Allocations in Uganda

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  • Stijn van Weezel

Abstract

In recent years there has been an increase in the number of studies using microlevel data to analyse the aid-conflict nexus at local level, however most of these studies focus on how conflict dynamics are influenced by aid allocations whereas there is relatively little analysis on how conflict affects subnational aid allocations. Estimating the effect of conflict on aid can be difficult given possible reverse causality, therefore this study exploits an exogenous driven shock in conflict intensity in Uganda to estimate the effect of aid allocations at subnational level. Using district level data for Uganda between 2002-2010, and information on both foreign aid commitments and disbursements, the results show that conflict is negatively related to aid allocations: Conflict-struck regions see both lower commitment and disbursement levels in the wake of conflict. Although the sudden outburst of violence in Uganda can help identifying the effect of conflict on aid allocations, one caveat of this approach is that it is hard to know to what extent the results generalise.

Suggested Citation

  • Stijn van Weezel, 2017. "The Effect of Civil War Violence on Aid Allocations in Uganda," Working Papers 201725, School of Economics, University College Dublin.
    • Handle: RePEc:ucn:wpaper:201725
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    File URL: http://hdl.handle.net/10197/9098
    File Function: First version, 2017
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    1. Jing Shao & Maojun Wang, 2020. "Analyzing the spatial allocation of Japan’s aid to China: A perspective from the relations between aid allocation stakeholders," Growth and Change, Wiley Blackwell, vol. 51(3), pages 1277-1303, September.

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    More about this item

    Keywords

    Civil conflict; Foreign aid; Uganda; Differences-in-differences;
    All these keywords.

    JEL classification:

    • D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances; Revolutions
    • F35 - International Economics - - International Finance - - - Foreign Aid
    • H72 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Budget and Expenditures
    • N47 - Economic History - - Government, War, Law, International Relations, and Regulation - - - Africa; Oceania

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