IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/36412.html
   My bibliography  Save this paper

Nationalism and international trade: theory and evidence

Author

Listed:
  • 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
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/36412/1/MPRA_paper_36412.pdf
    File Function: original version
    Download Restriction: no
    File URL: https://mpra.ub.uni-muenchen.de/36631/2/MPRA_paper_36631.pdf
    File Function: revised version
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Stephen Knack & Philip Keefer, 1997. "Does Social Capital Have an Economic Payoff? A Cross-Country Investigation," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 112(4), pages 1251-1288.
    2. Mayda, Anna Maria & Rodrik, Dani, 2005. "Why are some people (and countries) more protectionist than others?," European Economic Review, Elsevier, vol. 49(6), pages 1393-1430, August.
    3. Alesina, Alberto & Spolaore, Enrico, 2005. "War, peace, and the size of countries," Journal of Public Economics, Elsevier, vol. 89(7), pages 1333-1354, July.
    4. Philippe Martin & Thierry Mayer & Mathias Thoenig, 2010. "The geography of conflicts and free trade agreements," SciencePo Working papers Main hal-00973014, HAL.
    5. Reuven Glick & Alan M. Taylor, 2010. "Collateral Damage: Trade Disruption and the Economic Impact of War," The Review of Economics and Statistics, MIT Press, vol. 92(1), pages 102-127, February.
    6. Daron Acemoglu & Simon Johnson & James Robinson, 2005. "The Rise of Europe: Atlantic Trade, Institutional Change, and Economic Growth," American Economic Review, American Economic Association, vol. 95(3), pages 546-579, June.
    7. S. Brock Blomberg & Gregory D. Hess, 2006. "How Much Does Violence Tax Trade?," The Review of Economics and Statistics, MIT Press, vol. 88(4), pages 599-612, November.
    8. 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.
    9. Dani Rodrik & Arvind Subramanian & Francesco Trebbi, 2004. "Institutions Rule: The Primacy of Institutions Over Geography and Integration in Economic Development," Journal of Economic Growth, Springer, vol. 9(2), pages 131-165, June.
    10. Chang, Roberto & Kaltani, Linda & Loayza, Norman V., 2009. "Openness can be good for growth: The role of policy complementarities," Journal of Development Economics, Elsevier, vol. 90(1), pages 33-49, September.
    11. Barry Naughton, 2007. "The Chinese Economy: Transitions and Growth," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262640643, April.
    12. Ronald Findlay & Kevin H. O'Rourke, 2007. "Introduction to Power and Plenty: Trade, War, and the World Economy in the Second Millennium," Introductory Chapters, in: Power and Plenty: Trade, War, and the World Economy in the Second Millennium, Princeton University Press.
    13. Dani Rodrik, 1998. "Why Do More Open Economies Have Bigger Governments?," Journal of Political Economy, University of Chicago Press, vol. 106(5), pages 997-1032, October.
    14. Stergios Skaperdas & Constantinos Syropoulos, 2001. "Guns, Butter, and Openness: On the Relationship between Security and Trade," American Economic Review, American Economic Association, vol. 91(2), pages 353-357, May.
    15. Harrison, Ann E. & Rodriguez-Clare, Andres, 2009. "Trade, Foreign Investment, and Industrial Policy," MPRA Paper 15561, University Library of Munich, Germany.
    16. 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.
    17. James E. Anderson & Douglas Marcouiller, 2002. "Insecurity And The Pattern Of Trade: An Empirical Investigation," The Review of Economics and Statistics, MIT Press, vol. 84(2), pages 342-352, May.
    18. Daron Acemoglu & Pierre Yared, 2010. "Political Limits to Globalization," American Economic Review, American Economic Association, vol. 100(2), pages 83-88, May.
    19. Kerwin Kofi Charles & Jonathan Guryan, 2008. "Prejudice and Wages: An Empirical Assessment of Becker's The Economics of Discrimination," Journal of Political Economy, University of Chicago Press, vol. 116(5), pages 773-809, October.
    20. K. H. O'Rourke & R. Sinnott, 2001. "The Determinants of Individual Trade Policy Preferences: International Survey Evidence," CEG Working Papers 20016, Trinity College Dublin, Department of Economics.
    21. Bruce A., Blonigen, 2011. "Revisiting the evidence on trade policy preferences," Journal of International Economics, Elsevier, vol. 85(1), pages 129-135, September.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Jose Cuesta & Stephen Devereux & Abdul‐Gafaru Abdulai & Jaideep Gupte & Luigi Peter Ragno & Keetie Roelen & Rachel Sabates‐Wheeler & Tayllor Spadafora, 2021. "Urban social assistance: Evidence, challenges and the way forward, with application to Ghana," Development Policy Review, Overseas Development Institute, vol. 39(3), pages 360-380, May.
    2. 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.
    3. Ko, Yu-Chia & Zigan, Krystin & Liu, Yu-Lun, 2021. "Carbon capture and storage in South Africa: A technological innovation system with a political economy focus," Technological Forecasting and Social Change, Elsevier, vol. 166(C).
    4. Jiang, Lei & Wu, Huazhang & Song, Yang, 2022. "Diversified demand for health tourism matters: From a perspective of the intra-industry trade," Social Science & Medicine, Elsevier, vol. 293(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Xiaohuan Lan & Ben G. Li, 2015. "The Economics of Nationalism," American Economic Journal: Economic Policy, American Economic Association, vol. 7(2), pages 294-325, May.
    2. Douglas A. Irwin & Kevin H. O'Rourke, 2013. "Coping with Shocks and Shifts: The Multilateral Trading System in Historical Perspective," NBER Chapters, in: Globalization in an Age of Crisis: Multilateral Economic Cooperation in the Twenty-First Century, pages 11-37, National Bureau of Economic Research, Inc.
    3. Harms, Philipp & Steiner, Nils, 2019. "The China Shock and the Nationalist Backlash against Globalization: Attitudinal Evidence from the British Household Panel Survey," VfS Annual Conference 2019 (Leipzig): 30 Years after the Fall of the Berlin Wall - Democracy and Market Economy 203506, Verein für Socialpolitik / German Economic Association.
    4. Aleksandra Sojka & Jorge Diaz-Lanchas & Federico Steinberg, 2019. "The Politicization of Transatlantic Trade in Europe: Explaining Inconsistent Preferences Regarding Free Trade and the TTIP," JRC Working Papers on Territorial Modelling and Analysis 2019-09, Joint Research Centre.
    5. Daron Acemoglu & Pierre Yared, 2010. "Political Limits to Globalization," American Economic Review, American Economic Association, vol. 100(2), pages 83-88, May.
    6. Bruce A. Blonigen & Jacob McGrew, 2014. "Task Routineness and Trade Policy Preferences," Economics and Politics, Wiley Blackwell, vol. 26(3), pages 505-518, November.
    7. Ming-Chang Tsai & Hsin-Hsin Pan, 2022. "Protecting Farmers and Workers in Socialist Market Transitions: Mass Attitudes Toward Imports in Asia," SAGE Open, , vol. 12(2), pages 21582440221, May.
    8. Kashcheeva, Mila & Tsui, Kevin K., 2015. "Political oil import diversification by financial and commercial traders," Energy Policy, Elsevier, vol. 82(C), pages 289-297.
    9. Imai, Masami & Shelton, Cameron A., 2011. "Elections and political risk: New evidence from the 2008 Taiwanese Presidential Election," Journal of Public Economics, Elsevier, vol. 95(7), pages 837-849.
    10. Gordon H. Hanson & Kenneth Scheve & Matthew J. Slaughter, 2007. "Public Finance And Individual Preferences Over Globalization Strategies," Economics and Politics, Wiley Blackwell, vol. 19(1), pages 1-33, March.
    11. Sergey Mityakov & Heiwai Tang & Kevin K. Tsui, 2011. "Geopolitics, Global Patterns of Oil Trade, and China¡¦s Oil Security Quest," Working Papers 322011, Hong Kong Institute for Monetary Research.
    12. Ina Jäkel & Marcel Smolka, 2013. "Individual Attitudes Towards Trade: Stolper-Samuelson Revisited," Open Economies Review, Springer, vol. 24(4), pages 731-761, September.
    13. Jäkel, Ina C. & Smolka, Marcel, 2017. "Trade policy preferences and factor abundance," Journal of International Economics, Elsevier, vol. 106(C), pages 1-19.
    14. Nils D. Steiner & Philipp Harms, 2020. "Local Trade Shocks and the Nationalist Backlash in Political Attitudes: Panel Data Evidence from Great Britain," Working Papers 2014, Gutenberg School of Management and Economics, Johannes Gutenberg-Universität Mainz.
    15. Thierry Verdier, 2005. "Intégration commerciale « socialement responsable » : une approche en termes d'économie politique," Revue d’économie du développement, De Boeck Université, vol. 13(4), pages 55-121.
    16. Tomiura, Eiichi & Ito, Banri & Mukunoki, Hiroshi & Wakasugi, Ryuhei, 2021. "Individual characteristics and the demand for reciprocity in trade liberalization: Evidence from a survey in Japan," Japan and the World Economy, Elsevier, vol. 58(C).
    17. Gunes Gokmen, 2012. "Economic Clash? The Role of Cultural Cleavages in Bilateral Trade Relations," EcoMod2012 4252, EcoMod.
    18. Sergey Mityakov & Heiwai Tang & Kevin K. Tsui, 2013. "International Politics and Import Diversification," Journal of Law and Economics, University of Chicago Press, vol. 56(4), pages 1091-1121.
    19. Seitz, Michael & Tarasov, Alexander & Zakharenko, Roman, 2015. "Trade costs, conflicts, and defense spending," Journal of International Economics, Elsevier, vol. 95(2), pages 305-318.
    20. Nathaniel P.S. Cook & Robert L. Underwood, 2012. "Attitudes Toward Economic Globalization: Does Knowledge Matter?," Global Economy Journal (GEJ), World Scientific Publishing Co. Pte. Ltd., vol. 12(4), pages 1-20, November.

    More about this item

    Keywords

    Nationalism; political economy; trade; conflict; globalization;
    All these keywords.

    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 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Capitalist Institutions; Welfare State

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:36412. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Joachim Winter (email available below). General contact details of provider: https://edirc.repec.org/data/vfmunde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.