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Giving and Receiving Foreign Aid: Does Conflict Count?

  • Balla, Eliana
  • Reinhardt, Gina Yannitell
Registered author(s):

    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.

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    File URL: http://www.sciencedirect.com/science/article/B6VC6-4SWP267-J/2/440df6e6d422c137cd65a0544235c745
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    Article provided by Elsevier in its journal World Development.

    Volume (Year): 36 (2008)
    Issue (Month): 12 (December)
    Pages: 2566-2585

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    Handle: RePEc:eee:wdevel:v:36:y:2008:i:12:p:2566-2585
    Contact details of provider: Web page: http://www.elsevier.com/locate/worlddev

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    1. Heckman, James J, 1979. "Sample Selection Bias as a Specification Error," Econometrica, Econometric Society, vol. 47(1), pages 153-61, January.
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    10. Collier, Paul & Hoeffler, Anke, 2004. "Aid, policy and growth in post-conflict societies," European Economic Review, Elsevier, vol. 48(5), pages 1125-1145, October.
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    13. Murshed, S Mansoob & Sen, Somnath, 1995. "Aid Conditionality and Military Expenditure Reduction in Developing Countries: Models of Asymmetric Information," Economic Journal, Royal Economic Society, vol. 105(429), pages 498-509, March.
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