The economics of secession: Case of the former Yugoslavia
Andrés Rodríguez-Pose, Marko Stermšek 21 November 2014
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.
The supposed ‘economic dividend’ of secession
Secession is in fashion. After decades of strict enforcement during the cold war of the principle of territorial integrity, the independence of Slovenia from the former Yugoslavia, the collapse of the Soviet Union, the division of the former Czechoslovakia, and the separation of Eritrea from Ethiopia have opened the floodgates. Today, secessionist tensions are more and more evident, with flashpoints on all continents.
Europe's nations and regions Frontiers of economic research Politics and economics
secession, economic benefits, Yugoslavia, Conflicts
The eye, the needle and the camel: Rich countries can benefit from EU membership
Nauro F Campos, Fabrizio Coricelli, Luigi Moretti 05 April 2014
One concern with EU enlargement is that relatively poorer countries benefit more from becoming members. This column uses data from the 1973 and 1995 enlargements to show that richer countries also benefited a lot from joining the EU. Per capita incomes would have been considerably lower had these countries not joined the EU when they did. Yet, the difference between the estimated benefits for 1973 and 1995 enlargements is large, and thus, should not be attributed to differences in per capita incomes at the time of joining.
EU members are all alike; every EU candidate is a candidate in its own way. This is, of course, our attempt at rephrasing Anna Karenina’s opener (“Happy families are all alike; every unhappy family is unhappy in its own way”). Tolstoy had marriage in mind while Diamond (1997) had domesticated animals. For pets and marriages, success happens not because of one particular, positive, exceptional feature, but because of the lack of key negative traits.
EU enlargement, EU, economic benefits