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Economic growth and imperialism

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  • Corneo, Giacomo

Abstract

History shows militarily dominant states that pursue imperialism, relying on their might to extort resources from weaker states. Occasionally, the latter revolt and the dominant state suffers some casualties. This paper explores imperialism along steady-growth paths. If the dominant state maximizes domestic welfare, it should eventually abandon imperialism because its safety costs asymptotically overrun its material benefits. To shed light on diametrically opposed historical records, I propose a model of endogenous ideology and war bias in which the political elite cares about self-image. If that concern is strong enough, the political elite gradually identifies with its country's mission of hegemony and imperialism persists. It is first driven by material concerns and later by ideal ones. Despite its divergent preferences, the population of a dominant state generally has little interest to oppose imperialism.

Suggested Citation

  • Corneo, Giacomo, 2024. "Economic growth and imperialism," Discussion Papers 2024/5, Free University Berlin, School of Business & Economics.
  • Handle: RePEc:zbw:fubsbe:306844
    DOI: 10.17169/refubium-45419
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    JEL classification:

    • H8 - Public Economics - - Miscellaneous Issues
    • N4 - Economic History - - Government, War, Law, International Relations, and Regulation
    • O0 - Economic Development, Innovation, Technological Change, and Growth - - General
    • Z1 - Other Special Topics - - Cultural Economics

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