This paper provides an economic framework for examining how economic openness affects nationalism. Within a country, a region's level of nationalism varies according to its economic interests in its domestic market relative to its foreign market. All else being equal, increasing a region's foreign trade reduces its economic interests in its domestic market and thus weakens its nationalism. This prediction holds both cross-sectionally and over time, as evidenced by our empirical study using the Chinese Political Compass data and the World Value Surveys. Our framework also applies to analysis of nationalism across countries and receives support from cross-country data. (JEL F14, F52, O17, O19, P26, P33) It is not easy to see how the more extreme forms of nationalism can long survive when men have seen the Earth in its true perspective as a single small globe against the stars. — Arthur C. Clarke, 1951
About 75 percent of U.S.‐trained, noncitizen PhDs in science and engineering work in the United States after graduation, and 54 percent of those who stay take postdoctoral positions. The probability of postdoctoral participation is substantially higher for temporary visa holders than for permanent visa holders because of visa‐related restrictions in the U.S. labor market. To identify the causal effects of visa status on entry into a postdoctoral position, this paper uses a unique shock to visa status generated by the Chinese Student Protection Act of 1992. Eligibility for the act is used as an instrumental variable for visa status. Two‐stage least‐square estimates show that permanent visa holders are 24 percent less likely to take postdoctoral positions than temporary visa holders. The effects of a permanent visa vary considerably across research fields, but for most fields, it reduces postdoctoral participation significantly.
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