This thesis develops a better understanding of the relationship between conflict financing and the recurrence of intra-state armed conflict. It contributes to research on armed conflict by analysing conflict recurrence from the perpective of conflict financing and developing a comprehensive approach to conflict financing and an estimation tool for the cost of armed conflict. In addition, it elaborates a framework for the relationship between conflict financing and conflict dynamics which is applied to the cases of Angola, the Abkhazia conflict and Kosovo. The conclusions reflect on the role of the cost of conflict in conflict dynamics and the prominence of low intensity conflict as a type of armed conflict after the Cold War. They also present a typology of different methods of conflict financing and their effectiveness to finance major armed conflict