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Abstract
Abstract This article empirically analyses the relationship between nationalism and regional economic integration in the Kingdom of Yugoslavia between the First and the Second World War. It argues that prevailing nationalism had a negative impact on the economic integration of the regions within the Kingdom and further contributed to the political disintegration of the Kingdom. The analysis implies that the ideology of nationalism increased trade costs and thus retarded economic interconnectivity in the Kingdom of Yugoslavia, notwithstanding the favorable trade environment and the desire of the central elites to discourage ethnocentric sentiment.
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