How wealth of nations interact with aid and peace: A time and country variant analysis

By using panel VAR model and directed acyclic graphs (DAGs), we explore the dynamic interdependences among aid, development, and conflict. We construct a worldwide panel dataset of 79 countries over the period 1995-2010. Although foreign aid is sensitively responsive to the conflict or development shock, its effects on reducing conflict and improving development are largely relied on the wealth level and conflict proneness of the recipient country. We find that foreign aid only mitigates conflict in middle income developing countries, and enhances the development of the poor and conflict-prone countries.

Issue Date:
Aug 02 2016
Publication Type:
Conference Paper/ Presentation
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 Record created 2017-04-01, last modified 2018-01-23

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