Chapter 1 Conflict in the Presence of Arms Trade: Can Foreign Aid Reduce Conflict?

Welcome:
Guest

Frontiers of Economics and Globalization

ISSN: 1574-8715
Series editor(s): Professor Hamid Beladi, Professor E. Kwan Choi

Subject Area: Economics

Content: Series Volumes | Current Volume RSS

Options: To add Favourites and Table of Contents Alerts please take a Emerald profile

Document Information:
Title:	Chapter 1 Conflict in the Presence of Arms Trade: Can Foreign Aid Reduce Conflict?
Author(s):	Zsolt Becsi, Sajal Lahiri
Volume:	1 Editor(s): S. Lahiri ISBN: 978-0-444-52765-3 eISBN: 978-1-84950-013-5
Citation:	Zsolt Becsi, Sajal Lahiri (2006), Chapter 1 Conflict in the Presence of Arms Trade: Can Foreign Aid Reduce Conflict?, in S. Lahiri (ed.) Theory and Practice of Foreign Aid (Frontiers of Economics and Globalization, Volume 1), Emerald Group Publishing Limited, pp.3-15
DOI:	10.1016/S1574-8715(06)01001-3 (Permanent URL)
Publisher:	Emerald Group Publishing Limited
Article type:	Chapter Item
Abstract:	We construct a specific-factor trade-theoretic model for two small open economies that are in conflict with each other and where war efforts are determined endogenously. War efforts involve the use of soldiers and imported military hardware. The purpose of war is to capture disputed land or some other resource, but with war lives are lost and production is sacrificed. In this framework, we examine the effect of foreign aid on the war efforts in the warring countries. We find, inter alia, that an increase foreign aid to the warring countries may increase war efforts when arms protect lives in a significant way.