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The Effects of Economic Growth on the Aid–Conflict Nexus

The Effects of Economic Growth on the Aid–Conflict Nexus Can foreign aid reduce violence in recipient countries? Empirical studies on the aid–conflict nexus have had mixed results. This paper argues that foreign aid can alleviate political violence in the recipient country, especially when it contributes to economic growth. To test this hypothesis, I collected data on aid-receiving countries in Asia from 1980 to 2010 and empirically examined the relationships among development aid, winning coalition size, economic growth, civil wars, and domestic terrorism using a moderated mediation model. I find that the impact of foreign aid on economic growth depends on the size of the winning coalition. Countries with larger winning coalitions tend to have faster economic growth. And consequently, these countries are less susceptible to civil wars and domestic terrorist attacks. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Asian Survey University of California Press

The Effects of Economic Growth on the Aid–Conflict Nexus

Asian Survey , Volume 64 (4): 28 – Aug 6, 2024

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References (113)

Publisher
University of California Press
Copyright
© 2024 by The Regents of the University of California
ISSN
0004-4687
eISSN
1533-838X
DOI
10.1525/as.2024.2122898
Publisher site
See Article on Publisher Site

Abstract

Can foreign aid reduce violence in recipient countries? Empirical studies on the aid–conflict nexus have had mixed results. This paper argues that foreign aid can alleviate political violence in the recipient country, especially when it contributes to economic growth. To test this hypothesis, I collected data on aid-receiving countries in Asia from 1980 to 2010 and empirically examined the relationships among development aid, winning coalition size, economic growth, civil wars, and domestic terrorism using a moderated mediation model. I find that the impact of foreign aid on economic growth depends on the size of the winning coalition. Countries with larger winning coalitions tend to have faster economic growth. And consequently, these countries are less susceptible to civil wars and domestic terrorist attacks.

Journal

Asian SurveyUniversity of California Press

Published: Aug 6, 2024

Keywords: Winning coalition; foreign aid; economic growth; political violence; moderated mediation

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