Nationalism and Its Effects On Foreign Economic Policy

This paper explores the impact that nationalism and national identity have on a state's foreign economic policies and trade with other countries. In order to understand the impact that nationalism has on trade and foreign economic policy, this paper examines multiple presidential administrations from the Republic of China (Taiwan). Within each administration, this paper analyzes speeches, interviews, and policies to understand how leaders and the public utilize national identity to shape trade and economic relations. The findings of this paper demonstrate that nationalism likely does shape economic and trade policies by diverting trade away from political rivals or countries that conflict with nationalist goals. However, this only holds true when the economy is healthy. When the economy is unhealthy, nationalism has less of an impact on trade, as the direness of the economic situation prevents policies from being selective with where the state's economic growth comes from.