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Nationalism and international trade: theory and evidence

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  • Lan, Xiaohuan
  • Li, Ben

Abstract

This paper provides an economic framework to analyze the relationship between nationalistic sentiments and international trade. Nationalistic sentiments respond to economic interests, and in particular they vary according to the relative importance of the domestic market to local economies. Nationalistic sentiments are weaker (stronger) where the local economy relies more on exports (domestic sales). Our paper tests this theory using a unique dataset collected across 218 Chinese cities. We document a negative association between nationalistic sentiments and dependence on exports, conditional on a wide range of city characteristics including political ideologies of residents and local business climate.

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File URL: http://mpra.ub.uni-muenchen.de/36631/
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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 36412.

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Date of creation: 24 Oct 2011
Date of revision: 03 Feb 2012
Handle: RePEc:pra:mprapa:36412

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Keywords: Nationalism; political economy; trade; conflict; globalization;

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