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Nationalism and international trade: theory and evidence

  • Lan, Xiaohuan
  • Li, Ben

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.

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File URL: http://mpra.ub.uni-muenchen.de/36412/1/MPRA_paper_36412.pdf
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File URL: http://mpra.ub.uni-muenchen.de/36631/2/MPRA_paper_36631.pdf
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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 36412.

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Date of creation: 24 Oct 2011
Date of revision: 03 Feb 2012
Handle: RePEc:pra:mprapa:36412
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  1. Rodrik, Dani, 1996. "Why do More Open Economies Have Bigger Governments?," CEPR Discussion Papers 1388, C.E.P.R. Discussion Papers.
  2. Rodrik, Dani & Subramanian, Arvind & Trebbi, Francesco, 2002. "Institutions Rule: The Primacy of Institutions Over Geography and Integration in Economic Development," CEPR Discussion Papers 3643, C.E.P.R. Discussion Papers.
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  13. Abhijit V. Banerjee & Esther Duflo, 2008. "What Is Middle Class about the Middle Classes around the World?," Journal of Economic Perspectives, American Economic Association, vol. 22(2), pages 3-28, Spring.
  14. K. H. O'Rourke & R. Sinnott, 2001. "The Determinants of Individual Trade Policy Preferences: International Survey Evidence," Trinity Economics Papers 200110, Trinity College Dublin, Department of Economics.
  15. Knack, Stephen & Keefer, Philip, 1997. "Does Social Capital Have an Economic Payoff? A Cross-Country Investigation," The Quarterly Journal of Economics, MIT Press, vol. 112(4), pages 1251-88, November.
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  17. Bruce A., Blonigen, 2011. "Revisiting the evidence on trade policy preferences," Journal of International Economics, Elsevier, vol. 85(1), pages 129-135, September.
  18. Scheve, Kenneth F. & Slaughter, Matthew J., 2001. "What determines individual trade-policy preferences?," Journal of International Economics, Elsevier, vol. 54(2), pages 267-292, August.
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