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Economic integration and political fragmentation

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  • Grégoire ROTA-GRAZIOSI

    ()
    (Centre d'Etudes et de Recherches sur le Développement International)

Abstract

The purpose of this article is to provide an economic analysis of the relationship between economic integration and political fragmentation. This follows previous contributions from Alesina et al (2000), Casella (2001, Casella and Feinstein (2002), or Leite-Monteiro and Sato (2003). We go a step further than these authors by assuming that economic integration and political fragmentation are both decided by a majority vote. As them, we observe that economic integration involves political fragmentation. But, we establish also that economic integration might be sometimes deterred by the majority to prevent political fragmentation from happening.

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Bibliographic Info

Paper provided by CERDI in its series Working Papers with number 200628.

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Length: 24
Date of creation: 2006
Date of revision:
Handle: RePEc:cdi:wpaper:815

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Keywords: economic integration; public good; secession; vote;

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  1. Alberto Alesina & Enrico Spolaore & Romain Wacziarg, 1997. "Economic Integration and Political Disintegration," NBER Working Papers 6163, National Bureau of Economic Research, Inc.
  2. Leite-Monteiro, Manuel & Sato, Motohiro, 2003. "Economic integration and fiscal devolution," Journal of Public Economics, Elsevier, Elsevier, vol. 87(11), pages 2507-2525, October.
  3. Peter H. Lindert & Jeffrey G. Williamson, 2001. "Does Globalization Make the World More Unequal?," NBER Working Papers 8228, National Bureau of Economic Research, Inc.
  4. Casella, Alessandra, 1994. "Trade as an Engine of Political Change: A Parable," Economica, London School of Economics and Political Science, London School of Economics and Political Science, vol. 61(243), pages 267-84, August.
  5. Alesina, Alberto & Spolaore, Enrico, 1997. "On the Number and Size of Nations," The Quarterly Journal of Economics, MIT Press, MIT Press, vol. 112(4), pages 1027-56, November.
  6. Grégoire ROTA-GRAZIOSI, 2006. "The Theory of `Internal Exit', a comment on Buchanan and Faith (1987)," Working Papers, CERDI 200630, CERDI.
  7. Buchanan, James M & Faith, Roger L, 1987. "Secession and the Limits of Taxation: Toward a Theory of Internal Exit," American Economic Review, American Economic Association, American Economic Association, vol. 77(5), pages 1023-31, December.
  8. Alessandra Casella & Jonathan S. Feinstein, 2002. "Public Goods in Trade on the Formation of Markets and Jurisdictions," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 43(2), pages 437-462, May.
  9. Faini, Riccardo & Galli, Giampaolo & Gennari, Pietro & Rossi, Fulvio, 1997. "An empirical puzzle: Falling migration and growing unemployment differentials among Italian regions," European Economic Review, Elsevier, Elsevier, vol. 41(3-5), pages 571-579, April.
  10. Bolton, Patrick & Roland, Gerard & Spolaore, Enrico, 1996. "Economic theories of the break-up and integration of nations," European Economic Review, Elsevier, Elsevier, vol. 40(3-5), pages 697-705, April.
  11. Steven C. Salop, 1979. "Monopolistic Competition with Outside Goods," Bell Journal of Economics, The RAND Corporation, The RAND Corporation, vol. 10(1), pages 141-156, Spring.
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