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Foreign Aid and Conflicts: The Effects of 9/11 on Donor Behavior

Author

Listed:
  • Rabah Arezki

    (John F. Kennedy School of Government - Harvard University, CERDI - Centre d'Études et de Recherches sur le Développement International - IRD - Institut de Recherche pour le Développement - CNRS - Centre National de la Recherche Scientifique - UCA - Université Clermont Auvergne, FERDI - Fondation pour les Etudes et Recherches sur le Développement International)

  • Youssouf Camara

    (McGill University = Université McGill [Montréal, Canada])

  • Patrick Imam

    (International Monetary Fund (IMF))

  • Kangni Kpodar

    (International Monetary Fund (IMF))

Abstract

We explore the changing relationship between armed conflicts and non-military foreign aid. We find that the sign of the relationship linking (bilateral) aid commitments to the onset of armed conflicts in aid recipient countries is statistically significant and goes from negative to positive after the year 2001. We also find that our results are driven by grants rather than loans and by aid for health and humanitarian purposes. The results are robust to a myriad of checks including substituting armed conflicts with terror attacks, accounting for debt relief initiatives and using different estimators. We interpret our results as stemming from a shift in donors’ preferences induced by 9/11 attacks toward supporting conflict affected countries, confirming the primacy of donors’ interests over recipient needs.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Rabah Arezki & Youssouf Camara & Patrick Imam & Kangni Kpodar, 2026. "Foreign Aid and Conflicts: The Effects of 9/11 on Donor Behavior," Working Papers hal-05603663, HAL.
    • Handle: RePEc:hal:wpaper:hal-05603663
    DOI: 10.5089/9798400296161.001
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    Cited by:

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    2. Preeya Mohan & Eric Strobl, 2025. "Extreme Weather Events as Drivers of Climate Official Development Assistance: Evidence from Caribbean Small Island Developing States," Economics of Disasters and Climate Change, Springer, vol. 9(3), pages 473-494, November.

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