Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/207635 
Year of Publication: 
2018
Series/Report no.: 
Discussion Paper Series No. 657
Publisher: 
University of Heidelberg, Department of Economics, Heidelberg
Abstract: 
Using geo-referenced data on development projects by the World Bank and China, we provide a comprehensive analysis of the effect of aid on conflict using fixed effects and instrumental variables strategies. The results show that aid projects seem to reduce rather than fuel conflict, on average. Our analysis suggests that this is driven by projects in the transport and financial sectors, and through less lethal violence by governments against civilians. There are no clear differences based on ethnic fractionalization and government affiliation of a region, but some indications of spill-overs to other regions. We also find no increased likelihood of demonstrations, strikes or riots, but a higher likelihood of non-lethal government repression in areas where China is active.
Subjects: 
Development Aid
Conflict
Repression
Geolocation
World Bank
China
Africa
JEL: 
H77
N9
Document Type: 
Working Paper

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