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The Localized Geography of Foreign Aid: A New Dataset and Application to Violent Armed Conflict

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  • Findley, Michael G.
  • Powell, Josh
  • Strandow, Daniel
  • Tanner, Jeff
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    Abstract

    Existing foreign aid databases – the OECD’s CRS data and now AidData – are project-based. And yet nearly all empirical analyses using these data aggregate to the country-year level, thereby losing project-specific information. In this paper, we introduce new data on the geographic location of aid projects that have been committed to many African countries between 1989 and 2008. The data enable an examination of project-level information in a wider variety of systematic research contexts. To demonstrate the utility of the new data, we discuss how geographically disaggregated foreign aid and armed conflict data are needed to capture the theoretical mechanisms in the aid-conflict literature. We then map the disaggregated aid and conflict data in Sierra Leone, Angola, and Mozambique as specific examples of how these data could help disentangle competing causal mechanisms linking aid to conflict onset and dynamics. The research provides an important new perspective on the connections between aid and conflict. More generally, it is a crucial first step in geo-referencing and comparing foreign aid projects to various localized development outcomes.

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    File URL: http://www.sciencedirect.com/science/article/pii/S0305750X11001975
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    Bibliographic Info

    Article provided by Elsevier in its journal World Development.

    Volume (Year): 39 (2011)
    Issue (Month): 11 ()
    Pages: 1995-2009

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    Handle: RePEc:eee:wdevel:v:39:y:2011:i:11:p:1995-2009

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    Web page: http://www.elsevier.com/locate/worlddev

    Related research

    Keywords: geocoding; Mozambique; Angola; Sierra Leone; intrastate armed conflict; foreign aid;

    References

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    1. Christopher Blattman & Edward Miguel, 2009. "Civil War," NBER Working Papers 14801, National Bureau of Economic Research, Inc.
    2. Burnside, Craig & Dollar, David, 1997. "Aid, policies, and growth," Policy Research Working Paper Series 1777, The World Bank.
    3. Axel Dreher & Peter Nunnenkamp & Rainer Thiele, 2008. "Does Aid for Education Educate Children? Evidence from Panel Data," World Bank Economic Review, World Bank Group, vol. 22(2), pages 291-314, April.
    4. Claudia R. Williamson, 2008. "Foreign Aid and Human Development: The Impact of Foreign Aid to the Health Sector," Southern Economic Journal, Southern Economic Association, vol. 75(1), pages 188-207, July.
    5. Max Blouin & Stéphane Pallage, 2007. "Humanitarian Relief and Civil Conflict," Cahiers de recherche 0706, CIRPEE.
    6. Addison, Tony & Murshed, S. Mansoob, 2001. "The Fiscal Dimensions of Conflict and Reconstruction," Working Paper Series UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
    7. Paul Collier & Anke Hoeffler, 2007. "Unintended Consequences: Does Aid Promote Arms Races?," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 69(1), pages 1-27, 02.
    8. Feyzioglu, Tarhan & Swaroop, Vinaya & Zhu, Min, 1998. "A Panel Data Analysis of the Fungibility of Foreign Aid," World Bank Economic Review, World Bank Group, vol. 12(1), pages 29-58, January.
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