Working Paper: NBER ID: w30800
Authors: Enrico Spolaore
Abstract: This paper overviews theoretical and empirical studies of political borders from an economic perspective. It reviews theories of the number and size of nations focused on the trade-off between economies of scale in public-good provision and heterogeneity of preferences over public policies as well as on the factors affecting this trade-off, such as democratization, international openness, and conflict. It also reviews theories of political integration and disintegration focused on economic inequality, redistribution policies, and the geographical distribution of resources. Finally, the paper discusses recent empirical studies that shed light on the relations among heterogeneity, conflict, and borders. This line of research is part of a growing literature on the interplay between cultural variables and economic and political outcomes.
Keywords: No keywords provided
JEL Codes: D7; F5; H10; H40; H77; P0
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| larger political unions (F55) | economies of scale in public goods provision (H49) |
| heterogeneity of preferences over public policies (D72) | costs of larger sizes (L11) |
| internal societal conditions and international regimes (F55) | tradeoff between benefits of larger size and costs of heterogeneity (F12) |
| economic benefits from larger sizes decrease (L25) | political disintegration (F55) |
| lower trade barriers (F19) | economic benefits from larger sizes decrease (L25) |
| increased external threats (F52) | political disintegration (F55) |
| cultural factors (Z10) | shaping political borders (F55) |
| economic factors (P42) | shaping political borders (F55) |