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Can remittances buy peace?

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  • Michael Batu

Abstract

This paper offers new empirical evidence on the effects of remittance flows on conflict incidence, onset, and duration in recipient countries. It improves on previous studies by controlling for unobserved heterogeneity among remittance recipient countries, serial correlation of conflict, and the possibility of conflict being endogenous to remittances. To motivate the empirical findings, a micro‐founded model of conflict is developed. The model shows that wealth transfers (such as remittances) can raise the opportunity cost of participation in conflicts which can lead to a reduction in both the number of rebels and the force used by the government forces.

Suggested Citation

  • Michael Batu, 2019. "Can remittances buy peace?," Economics of Transition and Institutional Change, John Wiley & Sons, vol. 27(4), pages 891-913, October.
    • Handle: RePEc:wly:ectrin:v:27:y:2019:i:4:p:891-913
    DOI: 10.1111/ecot.12219
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    1. Yilmaz Onur ARI & Ibrahim BELLO, 2020. "Terrorism - workers' remittances nexus: empirical evidence from Turkey," Eastern Journal of European Studies, Centre for European Studies, Alexandru Ioan Cuza University, vol. 11, pages 70-93, December.

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    More about this item

    JEL classification:

    • D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances; Revolutions
    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • F24 - International Economics - - International Factor Movements and International Business - - - Remittances

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