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BREAKING THE UNBREAKABLE UNION: NATIONALISM, DISINTEGRATION AND THE SOVIET ECONOMIC COLLAPSE
Ist Teil von
The Economic journal (London), 2018-11, Vol.128 (615), p.2933-2967
Ort / Verlag
Oxford: John Wiley & Sons Ltd
Erscheinungsjahr
2018
Quelle
EBSCOhost Business Source Ultimate
Beschreibungen/Notizen
This article investigates the effect of prospective secessions on economic integration and growth by examining the break-up of the Soviet Union in the late 1980s and early 1990s. Firstly, I show theoretically how regional elites had an incentive to restrict domestic trade once secession from the Union became possible. Secondly, I show empirically that the increased likelihood of secessions by the Union's member republics strongly cut domestic trade. Thirdly, I show how this explains the severity of the Soviet output fall. These patterns persist once I instrument for prospective secessions with nationalist agendas that are exogenous to trade or growth.