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The Economic Approach to Political Borders

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  • Enrico Spolaore

Abstract

This paper overviews theoretical and empirical studies of political borders from an economic perspective. It reviews theories of the number and size of nations focused on the trade-off between economies of scale in public-good provision and heterogeneity of preferences over public policies as well as on the factors affecting this trade-off, such as democratization, international openness, and conflict. It also reviews theories of political integration and disintegration focused on economic inequality, redistribution policies, and the geographical distribution of resources. Finally, the paper discusses recent empirical studies that shed light on the relations among heterogeneity, conflict, and borders. This line of research is part of a growing literature on the interplay between cultural variables and economic and political outcomes.

Suggested Citation

  • Enrico Spolaore, 2022. "The Economic Approach to Political Borders," NBER Working Papers 30800, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:30800
    Note: POL
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    More about this item

    JEL classification:

    • D7 - Microeconomics - - Analysis of Collective Decision-Making
    • F5 - International Economics - - International Relations, National Security, and International Political Economy
    • F55 - International Economics - - International Relations, National Security, and International Political Economy - - - International Institutional Arrangements
    • H10 - Public Economics - - Structure and Scope of Government - - - General
    • H40 - Public Economics - - Publicly Provided Goods - - - General
    • H77 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Intergovernmental Relations; Federalism
    • P0 - Political Economy and Comparative Economic Systems - - General

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