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Conflict, Aid and Poverty: Cause, Effect and Prediction

  • Kibriya, Shahriar R.
  • Bessler, David A.
  • Price, Edwin
  • Sen Gupta, Rajorshi

Recent studies and reports suggest that foreign aid/intervention has been somewhat futile in eradicating conflict. In this study, we develop a simultaneous donor/recipient model of foreign aid and terrorism. Thereafter, we extend our theoretical propositions through a machine learning algorithm of inductive causation. We find that terrorism increases foreign aid, however foreign assistance is futile in mitigating terrorism. Additionally, socio-economic factors influence foreign aid given by the donors. But foreign assistance is unsuccessful in enhancing the livelihoods of the underprivileged. We conclude that foreign aid policies need to be more efficient.

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File URL: http://purl.umn.edu/61898
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Paper provided by Agricultural and Applied Economics Association in its series 2010 Annual Meeting, July 25-27, 2010, Denver, Colorado with number 61898.

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Date of creation: 2010
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Handle: RePEc:ags:aaea10:61898
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