This paper studies the effects of bilateral foreign aid on conflict escalation and de-escalation. We make three major … estimator that allows for unobserved heterogeneity and corrects for endogeneity. Third, we identify the causal effect of foreign … recipients. We establish that the effect of foreign aid on the various transition probabilities is heterogeneous and can be …

I construct a theory of foreign interventions in which the preferences of the foreign country over alternative local … groups are determined by each group's international economic ties. In equilibrium, the foreign country supports the group … arguments. -- regime change ; foreign interventions ; economic power ; economic nationalism ; Cold War ; Latin America …