Does Terror Increase Aid?
Courant Research Centre Discussion Paper No. 86
37 Pages Posted: 26 Aug 2011
Date Written: August 12, 2011
This article empirically investigates whether, and in which ways, donors in the Development Assistance Committee respond to transnational terrorist incidents and the onset of the War on Terror through changes in aid effort and aid allocation. First, an analysis of 22 donor countries shows that aid effort increased during the War on Terror period, but did not respond to the actual number of terror events. Second, using aid allocation equations, we find that countries where terror originates are not more likely to receive aid as a consequence, but if they are selected, they receive larger amounts of aid.
Keywords: Foreign Aid, Transnational Terrorism, War on Terror and Aid, DAC Donors, Heckman Selection Model
JEL Classification: F35
Suggested Citation: Suggested Citation