The political economy of regionalism

Sanjeev Goyal, Klaas Staal

Research output: Contribution to journalArticlepeer-review


We examine the incentives of regions to unite and separate. Separation allows for greater influence over the nature of political decision making while unification allows regions to exploit economies of scale in the provision of government. Our paper explores the influence of size, location and the diversity within regions in shaping this trade-off. We then examine the way in which alternative political institutions aggregate regional preferences and thereby define the number of countries.

Original languageEnglish (US)
Pages (from-to)563-593
Number of pages31
JournalEuropean Economic Review
Issue number3
StatePublished - Jun 2004


  • Diversity
  • Referendum
  • Secession
  • Unequal union

ASJC Scopus subject areas

  • Finance
  • Economics and Econometrics


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