Find in Library
Search millions of books, articles, and more
Indexed Open Access Databases
Aid and conflict: Evidence from Chinese aid
oleh: Jianan Li, Xiaoning Long, Qi Jiang
Format: | Article |
---|---|
Diterbitkan: | KeAi Communications Co. Ltd. 2022-06-01 |
Deskripsi
Using data from AidData and the conflict report from Uppsala Conflict Data Program (UCDP) from 2000 to 2014, we find that China's other official flows (OOF) aid can significantly reduce the frequency of conflicts. To deal with the endogeneity, we use China's competitive capacity as the instrumental variable. Our results are robust when considering the possible sample selection bias and different types of international aid. We find that increasing the local infrastructure investment and employment is the main mechanism, which increases the opportunity cost of engaging in conflicts. Our results provide evidence on the effectiveness of China's aid mode and the importance of infrastructure investment in developing countries.