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Nationalism and international trade: theory and evidence

Author

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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.

Suggested Citation

  • Lan, Xiaohuan & Li, Ben, 2011. "Nationalism and international trade: theory and evidence," MPRA Paper 36412, University Library of Munich, Germany, revised 03 Feb 2012.
  • Handle: RePEc:pra:mprapa:36412
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    File URL: https://mpra.ub.uni-muenchen.de/36631/2/MPRA_paper_36631.pdf
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    References listed on IDEAS

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    Cited by:

    1. Vinokurov, Evgeny & Kulik, Sergey & Spartak, Andrey & Yurgens, Igor, 2014. "Two Integration Projects in Europe: Dead End of Struggle," MPRA Paper 61636, University Library of Munich, Germany.

    More about this item

    Keywords

    Nationalism; political economy; trade; conflict; globalization;

    JEL classification:

    • F52 - International Economics - - International Relations, National Security, and International Political Economy - - - National Security; Economic Nationalism
    • F10 - International Economics - - Trade - - - General
    • D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances; Revolutions
    • P16 - Economic Systems - - Capitalist Systems - - - Political Economy of Capitalism

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