Aid and conflict: Evidence from Chinese aid

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 ins...

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Main Authors: Jianan Li, Xiaoning Long, Qi Jiang
Format: Article
Language:English
Published: KeAi Communications Co. Ltd. 2022-06-01
Series:China Economic Quarterly International
Online Access:http://www.sciencedirect.com/science/article/pii/S266693312200020X
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author Jianan Li
Xiaoning Long
Qi Jiang
author_facet Jianan Li
Xiaoning Long
Qi Jiang
author_sort Jianan Li
collection DOAJ
description 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.
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spelling doaj.art-42158c4cf1a14bd9ae146ef3149bba2a2022-12-27T04:38:51ZengKeAi Communications Co. Ltd.China Economic Quarterly International2666-93312022-06-0122111123Aid and conflict: Evidence from Chinese aidJianan Li0Xiaoning Long1Qi Jiang2The School of Economics, Xiamen University, China; The Wang Yanan Institute for Studies in Economics, Xiamen University, ChinaIntellectual Property Research Institute, Xiamen University, China; The Belt and Road Research Institute, Xiamen University, China; Corresponding author. Room 604, Zuying Building (Jiageng IV), Xiamen University, No.422 Siming South Road, Siming District, Xiamen, Fujian, 361005, China.The School of Economics, Xiamen University, ChinaUsing 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.http://www.sciencedirect.com/science/article/pii/S266693312200020X
spellingShingle Jianan Li
Xiaoning Long
Qi Jiang
Aid and conflict: Evidence from Chinese aid
China Economic Quarterly International
title Aid and conflict: Evidence from Chinese aid
title_full Aid and conflict: Evidence from Chinese aid
title_fullStr Aid and conflict: Evidence from Chinese aid
title_full_unstemmed Aid and conflict: Evidence from Chinese aid
title_short Aid and conflict: Evidence from Chinese aid
title_sort aid and conflict evidence from chinese aid
url http://www.sciencedirect.com/science/article/pii/S266693312200020X
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AT xiaoninglong aidandconflictevidencefromchineseaid
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