Scandinavian Working Papers in Economics
Working Papers in Economics,
University of Gothenburg, Department of Economics
No 313: Nationalism and Government Effectiveness
Pelle Ahlerup () and Gustav Hansson ()
Additional contact information
Pelle Ahlerup: Department of Economics, School of Business, Economics and Law, Göteborg University, Postal: Box 640, SE 40530 GÖTEBORG
Gustav Hansson: Department of Economics, School of Business, Economics and Law, Göteborg University, Postal: Box 640, SE 40530 GÖTEBORG
Abstract: The literature on nation-building and nationalism suggests that nation-building affects economic and political performance, mitigates the problems associated with ethnic hetero- geneity, but that nationalism, an indicator of successful nation-building, is linked to dismal performance via protectionism and intolerance. This paper shows that there is a nonlinear association between nationalism and government effectiveness, that nationalism leaves no imprint on the effects of ethnic heterogeneity but may be a positive force in former colonies, and that actual trade ows are independent of the level of nationalism in the population.
Keywords: Nationalism; Nation-building; Ethnic Diversity; Government Effectiveness; Protectionism
32 pages, September 2, 2008
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