Can Peace Be Purchased? A Sectoral-Level Analysis of Aid
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Young, Joseph K., and Michael G. Findley. "Can Peace Be Purchased? A Sectoral-Level Analysis of Aid." Public Choice. December (2011): 365-381.
Does foreign aid reduce terrorism? We examine whether foreign aid decreases terrorism by analyzing whether aid targeted toward certain sectors is more effective than oth- ers. We use the most comprehensive databases on foreign aid and transnational terrorism -- AidData and ITERATE -- to provide a series of statistical tests. Our results show that foreign aid decreases terrorism especially when targeted toward sectors, such as education, health, civil society, and conflict prevention. These sector-level results indicate that foreign aid can be an effective instrument in fighting terrorism if allocated in appropriate ways.
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