Unintended Consequences: Does Aid Promote Arms Races?
Using global data for the period 1960-99, we model military expenditure. Neighbours' military spending and development aid are important determinants of military expenditure. An implication of the model is that there are regional arms races which are fuelled by aid. Potentially, aid is encouraging a 'regional public bad'. There may, however, be an offsetting public good effect if military spending deters rebellions. In a simultaneous equation model, we find no deterrence effect of spending on the risk of civil war. Hence, there appears to be no regional public good effect offsetting the public bad arising from a neighbourhood arms race. Copyright 2007 Blackwell Publishing Ltd.
Year of publication: |
2007
|
---|---|
Authors: | Collier, Paul ; Hoeffler, Anke |
Published in: |
Oxford Bulletin of Economics and Statistics. - Department of Economics, ISSN 0305-9049. - Vol. 69.2007, 1, p. 1-27
|
Publisher: |
Department of Economics |
Saved in:
freely available
Saved in favorites
Similar items by person
-
Greed and Grievance in Civil War
Collier, Paul, (1999)
-
Flight Capital As a Portfolio Choice
Hoeffler, Anke, (1999)
-
Collier, Paul, (2006)
- More ...