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The political economy of regionalism |
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| Authors: | Sanjeev Goyal Klaas Staal |
| Affiliation: | a Department of Economics, Queen Mary, University of London, Mile End Road, London E1 4NS, UK b Econometric Institute, Erasmus University, Rotterdam, The Netherlands c Tinbergen Institute, Erasmus University, P.O. Box 1738, 3000 DR Rotterdam, The Netherlands |
| Abstract: | We examine the incentives of regions to unite and separate. Separation allows for greater influence over the nature of political decision making while unification allows regions to exploit economies of scale in the provision of government. Our paper explores the influence of size, location and the diversity within regions in shaping this trade-off. We then examine the way in which alternative political institutions aggregate regional preferences and thereby define the number of countries. |
| Keywords: | D7 H2 H7 |
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