The Economics of Nationalism
American Economic Journal: Economic Policy
vol. 7,
no. 2, May 2015
(pp. 294-325)
Abstract
This paper provides an economic framework for examining how economic openness affects nationalism. Within a country, a region's level of nationalism varies according to its economic interests in its domestic market relative to its foreign market. All else being equal, increasing a region's foreign trade reduces its economic interests in its domestic market and thus weakens its nationalism. This prediction holds both cross-sectionally and over time, as evidenced by our empirical study using the Chinese Political Compass data and the World Value Surveys. Our framework also applies to analysis of nationalism across countries and receives support from cross-country data. (JEL F14, F52, O17, O19, P26, P33)Citation
Lan, Xiaohuan, and Ben G. Li. 2015. "The Economics of Nationalism." American Economic Journal: Economic Policy, 7 (2): 294-325. DOI: 10.1257/pol.20130020Additional Materials
JEL Classification
- F14 Empirical Studies of Trade
- F52 National Security; Economic Nationalism
- O17 Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
- O19 International Linkages to Development; Role of International Organizations
- P26 Socialist Systems and Transitional Economies: Political Economy; Property Rights
- P33 Socialist Institutions and Their Transitions: International Trade, Finance, Investment, Relations, and Aid
There are no comments for this article.
Login to Comment