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The Economics of Nation-Building: Methodological Tool Kit and Policy Lessons

Author

Listed:
  • Dominic Rohner

    (UNIL - Université de Lausanne = University of Lausanne, Graduate Institute Geneva, CEPR - Center for Economic Policy Research)

  • Ekaterina Zhuravskaya

    (PSE - Paris School of Economics - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - EHESS - École des hautes études en sciences sociales - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - ENPC - École nationale des ponts et chaussées - IP Paris - Institut Polytechnique de Paris, PJSE - Paris Jourdan Sciences Economiques - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - EHESS - École des hautes études en sciences sociales - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - ENPC - École nationale des ponts et chaussées - IP Paris - Institut Polytechnique de Paris, CEPR - Center for Economic Policy Research)

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 intergroup contact, the choice of national education curricula, propaganda, leadership, decentralization, and foreign interventions. We highlight instances in which these policies work or backfire.

Suggested Citation

  • Dominic Rohner & Ekaterina Zhuravskaya, 2025. "The Economics of Nation-Building: Methodological Tool Kit and Policy Lessons," Post-Print halshs-05168992, HAL.
    • Handle: RePEc:hal:journl:halshs-05168992
    DOI: 10.1146/annurev-economics-081224-103104
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