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Giving and Receiving Foreign Aid: Does Conflict Count?

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  • Balla, Eliana
  • Reinhardt, Gina Yannitell

Abstract

Summary Of what relative importance are strategic motivators for bilateral aid donors, and how important is a recipient's geographic proximity to conflict relative to previously examined economic and political motivators? We find that donors have historically responded to balanced incentives to reduce recipient poverty and further donor political and economic goals. Every bilateral donor conditions aid on conflict. The United States allocates large amounts of development aid to countries bordering a conflict, both pre- and post-Cold War. However, controlling for development levels and donor economic and political interest, most donors reduce aid to a recipient with an in-house or nearby intense conflict.

Suggested Citation

  • Balla, Eliana & Reinhardt, Gina Yannitell, 2008. "Giving and Receiving Foreign Aid: Does Conflict Count?," World Development, Elsevier, vol. 36(12), pages 2566-2585, December.
  • Handle: RePEc:eee:wdevel:v:36:y:2008:i:12:p:2566-2585
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    References listed on IDEAS

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    Cited by:

    1. Lebovic, James H., 2014. "The Millennium Challenge Corporation: Organizational Constraints on US Foreign Aid, 2004–11," World Development, Elsevier, vol. 58(C), pages 116-129.
    2. Brück, Tilman & Xu, Guo, 2012. "Who gives aid to whom and when? Aid accelerations, shocks and policies," European Journal of Political Economy, Elsevier, vol. 28(4), pages 593-606.
    3. repec:eee:poleco:v:51:y:2018:i:c:p:1-14 is not listed on IDEAS
    4. Stubbs, Thomas H. & Kentikelenis, Alexander E. & King, Lawrence P., 2016. "Catalyzing Aid? The IMF and Donor Behavior in Aid Allocation," World Development, Elsevier, vol. 78(C), pages 511-528.
    5. Paul Bezerra & Alex Braithwaite, 2016. "Locating foreign aid commitments in response to political violence," Public Choice, Springer, vol. 169(3), pages 333-355, December.
    6. De Jong, Joop T.V.M., 2010. "A public health framework to translate risk factors related to political violence and war into multi-level preventive interventions," Social Science & Medicine, Elsevier, vol. 70(1), pages 71-79, January.
    7. Raschky, Paul A. & Schwindt, Manijeh, 2012. "On the channel and type of aid: The case of international disaster assistance," European Journal of Political Economy, Elsevier, vol. 28(1), pages 119-131.
    8. Yu Wang, 2013. "Veto Players and Foreign Aid Inflows," Oxford Development Studies, Taylor & Francis Journals, vol. 41(3), pages 391-408, September.
    9. Temple, Jonathan R.W., 2010. "Aid and Conditionality," Handbook of Development Economics, Elsevier.
    10. Donaubauer, Julian & Herzer, Dierk & Nunnenkamp, Peter, 2016. "The effectiveness of aid under post-conflict conditions: A sector-specific analysis," Kiel Working Papers 2065, Kiel Institute for the World Economy (IfW).
    11. Hicks, Daniel L. & Hicks, Joan Hamory & Maldonado, Beatriz, 2016. "Women as policy makers and donors: Female legislators and foreign aid," European Journal of Political Economy, Elsevier, vol. 41(C), pages 46-60.
    12. Stijn van Weezel, 2017. "The Effect of Civil War Violence on Aid Allocations in Uganda," Working Papers 201725, School of Economics, University College Dublin.

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