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The Economics of Nation-Building: Methodological Toolkit and Policy Lessons

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  • Dominic Rohner
  • Ekaterina Zhuravskaya

Abstract

This article reviews the recent burgeoning political economics research on nation-building. We focus on three main aspects of this body of work. First, we discuss methodological issues related to measuring nation-building outcomes and provide a synthesis of studies that employ different techniques, such as surveys on identity, lab-in-the-field methods, and direct observation of actions signaling identity. Second, we explore preconditions for effective nation-building, particularly focusing on ethnolinguistic polarization and segregation, and discuss how these factors may influence policy choices and their effectiveness. We also consider geopolitical factors. Finally, we review advances in the literature evaluating the effects of major nation-building policies, including those that encourage inter-group contact, the choice of national education curriculum, propaganda, leadership, decentralization, and foreign interventions. We highlight instances when these policies work and when they backfire.

Suggested Citation

  • Dominic Rohner & Ekaterina Zhuravskaya, 2024. "The Economics of Nation-Building: Methodological Toolkit and Policy Lessons," CESifo Working Paper Series 11348, CESifo.
    • Handle: RePEc:ces:ceswps:_11348
    as

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    References listed on IDEAS

    as
    1. David Yanagizawa-Drott, 2014. "Propaganda and Conflict: Evidence from the Rwandan Genocide," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 129(4), pages 1947-1994.
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    More about this item

    Keywords

    nation-building; national identity; social cohesion; conflict;
    All these keywords.

    JEL classification:

    • D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances; Revolutions
    • H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government
    • H56 - Public Economics - - National Government Expenditures and Related Policies - - - National Security and War
    • H77 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Intergovernmental Relations; Federalism
    • N40 - Economic History - - Government, War, Law, International Relations, and Regulation - - - General, International, or Comparative
    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • Z10 - Other Special Topics - - Cultural Economics - - - General
    • P00 - Political Economy and Comparative Economic Systems - - General - - - General

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