The Economic Cost of Nationalism

Miaomiao Tao and Jamel Saadaoui

MPRA Paper from University Library of Munich, Germany

Abstract: We identify the negative influence of nationalist sentiment on economic growth. Our cross-country evidence confirms the growth-depressing effect of nationalism, projecting that economic growth has been constrained by roughly 12 percent over thirty years. This conclusion is robust across various tests. Paradoxically, nationalism helps reduce environmental damage, lowering overall emissions and intensity, especially in the building, industry, and transportation sectors. We observe that the effect of nationalism in cutting carbon emissions weakens slightly as GDP per capita rises. However, in poorer countries, this environmental impact remains steady regardless of changes in income, suggesting nationalism’s role in reducing emissions stays stable despite economic growth.

Keywords: Nationalism; Economic Growth; Political Economy; Environmental Impact (search for similar items in EconPapers)
JEL-codes: F5 F52 O40 O47 (search for similar items in EconPapers)
Date: 2025-06-22
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:125113

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