Resident terrorist groups, military aid, and moral hazard: further empirical analysis/
Wukki Kim, Dong Li & Todd Sandler
- 2021
The current article improves on the empirics of the pioneering article by showing that the moral-hazard concerns extend to other major donors - the United Kingdom, France, and Germany. Additionally, military assistance given by a collective of countries to host countries greatly reduces the moral hazard but does not eliminate it. Moreover, policy alignment or affinity between a major donor and the host aid-recipient country does not generally augment resident terrorist groups' survival.