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The economics of secession: a review of legal, theoretical, and empirical aspects

Author

Listed:
  • Thierry Madiès

    (Université de Fribourg, Faculté des sciences économiques et sociales - Albert-Ludwigs-Universität Freiburg = University of Freiburg)

  • Grégoire Rota-Graziosi

    (CERDI - Centre d'Études et de Recherches sur le Développement International - IRD - Institut de Recherche pour le Développement - CNRS - Centre National de la Recherche Scientifique - UCA - Université Clermont Auvergne)

  • Jean-Pierre Tranchant

    (Institute of Development Studies, CERDI - Centre d'Études et de Recherches sur le Développement International - IRD - Institut de Recherche pour le Développement - CNRS - Centre National de la Recherche Scientifique - UCA - Université Clermont Auvergne)

  • Cyril Trépier

    (IFG Lab - UP8 - Université Paris 8)

Abstract

The aim of this paper is to present a review of the legal, theoretical, and empirical aspects of secessions from an economic perspective. This survey provides interesting insights into recent events such as the Brexit and the threat of secession made for instance by Scotland and Catalonia. International law does not grant a general right to secede, nor does it forbid secession. Furthermore, there are several modalities of secessions, which turn out to be important for new states that want to get an international recognition. For its part, the economic theory shows that the decision for a region to remain in a country (or a union) or to secede eventually results from a trade-off between the benefits of being part of a large country, on the one hand, and the costs often associated to more heterogeneity, on the other hand. The latter are generally more important for those regions which are “far away” from the central (federal) government. Empirical literature confirms the importance of these trade-offs and shows that decentralization may be effective to accommodate secessionist conflicts only if certain conditions are fulfilled.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Thierry Madiès & Grégoire Rota-Graziosi & Jean-Pierre Tranchant & Cyril Trépier, 2018. "The economics of secession: a review of legal, theoretical, and empirical aspects," Post-Print hal-01816827, HAL.
  • Handle: RePEc:hal:journl:hal-01816827
    DOI: 10.1186/s41937-017-0015-6
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    Cited by:

    1. Cerniglia, Floriana & Longaretti, Riccarda & Zanardi, Alberto, 2021. "How to design decentralisation to curb secessionist pressures? Top-down vs. bottom-up reforms," Structural Change and Economic Dynamics, Elsevier, vol. 58(C), pages 377-390.
    2. Flamand, Sabine, 2019. "Partial decentralization as a way to prevent secessionist conflict," European Journal of Political Economy, Elsevier, vol. 59(C), pages 159-178.
    3. Courtney V. Bower & Mark J. Minton & John I. Carruthers, 2023. "Endogenously driven de‐peripheralization through political secession: The case of the Donbas region," Regional Science Policy & Practice, Wiley Blackwell, vol. 15(7), pages 1647-1663, September.
    4. Floriana Cerniglia; Riccarda Longaretti; Alberto Zanardi, 2020. "The Emergence of Asymmetric Decentralization: Centrifugal and Centripetal Forces," CRANEC - Working Papers del Centro di Ricerche in Analisi economica e sviluppo economico internazionale crn2001, Università Cattolica del Sacro Cuore, Centro di Ricerche in Analisi economica e sviluppo economico internazionale (CRANEC).

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