This paper studies the effects of bilateral foreign aid on conflict escalation and de-escalation. We make three major …-sided and multifaceted nature of conflict. Second, we develop a novel empirical framework. We propose a dynamic ordered probit … aid on conflict by predicting bilateral aid flows based on electoral outcomes of donor countries that are exogenous to …

open civil conflict against the government. Our model implies that terrorism emerges if constraints on the ruling executive … group are intermediate and rents are sizeable, whereas conflict looms under poor executive constraints. Analyzing annual … when considering the incidence and onset of terrorism and conflict. The corresponding magnitudes are economically sizeable …

can reverse a country’s apparent comparative advantage relative to its comparative advantage in the absence of conflict …. And, where such conflict is present, comparisons of autarkic prices to world prices could be inaccurate predictors of …