@TechReport{iza:izadps:dp16340, author={Mercier, Marion and Silve, Arthur and Tremblay-Auger, Benjamin}, title={Building Reputation: Proxy Wars and Transnational Identities}, year={2023}, month={Jul}, institution={Institute of Labor Economics (IZA)}, address={Bonn}, type={IZA Discussion Paper}, number={16340}, url={https://www.iza.org/publications/dp16340}, abstract={In the context of a global security framework that mitigates interstate conflicts, nation-states establish a reputation for resolve by supporting foreign insurrections. Our theoretical predictions indicate that states with a greater number of co-ethnic groups abroad are more inclined to endorse foreign uprisings, resulting in higher political inclusion for such groups. With a dataset comprising over 280,000 ethnic group × sponsor state × target state × year observations, our analysis corroborates the role of reputation-building through co-ethnicity narratives as a determinant of sponsor state engagement. We argue that this mechanism engenders political concessions within target states, ultimately benefiting groups associated with reputed potential sponsors.}, keywords={reputation;proxy war}, }