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The Economics of Nation-Building: Methodological Toolkit and Policy Lessons

Author

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  • Dominic Rohner
  • Ekaterina Zhuravskaya

Abstract

This article reviews the recent burgeoning political economics research on nation-building. We focus on three main aspects of this body of work. First, we discuss methodological issues related to measuring nation-building outcomes and provide a synthesis of studies that employ different techniques, such as surveys on identity, lab-in-the-field methods, and direct observation of actions signaling identity. Second, we explore preconditions for effective nation-building, particularly focusing on ethnolinguistic polarization and segregation, and discuss how these factors may influence policy choices and their effectiveness. We also consider geopolitical factors. Finally, we review advances in the literature evaluating the effects of major nation-building policies, including those that encourage inter-group contact, the choice of national education curriculum, propaganda, leadership, decentralization, and foreign interventions. We highlight instances when these policies work and when they backfire.

Suggested Citation

  • Dominic Rohner & Ekaterina Zhuravskaya, 2024. "The Economics of Nation-Building: Methodological Toolkit and Policy Lessons," CESifo Working Paper Series 11348, CESifo.
    • Handle: RePEc:ces:ceswps:_11348
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    References listed on IDEAS

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    1. Scacco, Alexandra & Warren, Shana S., 2018. "Can Social Contact Reduce Prejudice and Discrimination? Evidence from a Field Experiment in Nigeria," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 112(3), pages 654-677.
    2. Enrico Spolaore, 2022. "The Economic Approach to Political Borders," NBER Working Papers 30800, National Bureau of Economic Research, Inc.
    3. David Yanagizawa-Drott, 2014. "Propaganda and Conflict: Evidence from the Rwandan Genocide," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 129(4), pages 1947-1994.
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    Cited by:

    1. Mustika, S., 2025. "Assimilation Through Education: The Direct and Spillover Effects of Indonesia’s Abolishment of Chinese Education," Cambridge Working Papers in Economics 2539, Faculty of Economics, University of Cambridge.
    2. Li, Zehui & Liao, Haoye & Ma, Sen & Qiu, Junjie & Xue, Sen, 2026. "Inter-group contact and national identity: Evidence from Hong Kong and Macau students in the mainland of China," Journal of Development Economics, Elsevier, vol. 179(C).
    3. Chaudhary, Latika & Dupraz, Yannick & Fenske, James, 2025. "A Century of Language Barriers to Migration in India," The Warwick Economics Research Paper Series (TWERPS) 1580, University of Warwick, Department of Economics.
    4. repec:aif:report:v:13:y:2026:i:1:p:350-370 is not listed on IDEAS

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    More about this item

    Keywords

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    JEL classification:

    • D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances; Revolutions
    • H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government
    • H56 - Public Economics - - National Government Expenditures and Related Policies - - - National Security and War
    • H77 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Intergovernmental Relations; Federalism
    • N40 - Economic History - - Government, War, Law, International Relations, and Regulation - - - General, International, or Comparative
    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • Z10 - Other Special Topics - - Cultural Economics - - - General
    • P00 - Political Economy and Comparative Economic Systems - - General - - - General

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