One frequently used argument in favour of secession is that there are economic benefits from independence. However, whether or not this is the case remains largely unexplored. This column addresses this question by examining the economic implications of secession in the case of the former Yugoslavia. The authors find that independence had no favourable economic impact. The way secession was achieved, however, mattered. Whereas secession without real conflict did not leave any noticeable economic impact, violent secession has, by contrast, led to a significant destruction of wealth.
Andrés Rodríguez-Pose, Marko Stermšek, 21 November 2014
Nauro F. Campos, Fabrizio Coricelli, Luigi Moretti, 27 April 2016
One common concern about membership of the EU is the notion that poorer members have more to gain than richer ones. This column focuses on the countries that joined the EU in 1973 (Denmark, UK and Ireland) and in 1995 (Austria, Finland and Sweden). The authors estimate that these rich countries benefited substantially from joining the EU. Furthermore, while the benefits from EU membership to poorer countries tend to be mostly in terms of per capita income, for richer countries the benefits tend to be mostly in terms of productivity.