This article contributes to the debate on aid volatility and argues that official assistance copes with exogenous output shocks in recipient countries and stabilizes resources available for the financing of consumption, investment and net trade. Stabilizing aid is effective in aid-dependent and...

Civil conflicts are a major challenge to the economic development of a country and its neighbors. The present article analyzes the consequences of conflicts on regional economic integration outcomes among African nations. Our findings document that civil conflicts affect the economic fate of...