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Nationalism and government effectiveness

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  • Ahlerup, Pelle
  • Hansson, Gustav

Abstract

Nation-building is believed to have a positive influence on economic and political outcomes, especially in countries with ethnically fragmented populations. Yet nationalism, an indicator of successful nation-building, has been empirically linked to protectionism and intolerance, which suggests that dismal performance is a more likely outcome. This paper empirically identifies an inverted U-shaped relationship between nationalism and government effectiveness. The results suggest that the level of nationalism in the population is higher than optimal in most countries. It is further shown that nationalism may mitigate the negative effects of ethnic heterogeneity in former colonies. We find no clear linkages between nationalism and trade openness.

Suggested Citation

  • Ahlerup, Pelle & Hansson, Gustav, 2011. "Nationalism and government effectiveness," Journal of Comparative Economics, Elsevier, vol. 39(3), pages 431-451, September.
    • Handle: RePEc:eee:jcecon:v:39:y:2011:i:3:p:431-451
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    1. Can civic nationalism help reduce corruption? Insights from Solomon Islands
      by Grant Walton in Development Policy Blog on 2022-11-16 19:00:10

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    More about this item

    Keywords

    Ethnic diversity Government effectiveness Nation-building Nationalism Protectionism;

    JEL classification:

    • F52 - International Economics - - International Relations, National Security, and International Political Economy - - - National Security; Economic Nationalism
    • N40 - Economic History - - Government, War, Law, International Relations, and Regulation - - - General, International, or Comparative

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