Annexation or Conquest? the Economics of Empire Building

31 Pages Posted: 3 Feb 2001 Last revised: 28 Feb 2021

See all articles by Herschel I. Grossman

Herschel I. Grossman

Deceased

Juan Mendoza

SUNY at Buffalo, College of Arts & Sciences, Department of Economics

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Date Written: February 2001

Abstract

This paper develops an economic theory of empire building. This theory addresses the choice among three strategies that empire builders historically have used. We call these strategies Uncoerced Annexation, Coerced Annexation, and Attempted Conquest. The theory shows how the choice among these strategies depends on such factors as the economic gains from imperial expansion, the relative effectiveness of imperial armies, the costs of projecting imperial military power, and liquidity constraints on financing imperial armies. This theory also addresses the scope of imperial ambitions. The paper uses examples from the history of the Roman, Mongol, Ottoman, and Nazi German empires to illustrate the applicability of the theory.

Suggested Citation

Grossman (deceased), Herschel I. and Mendoza, Juan J., Annexation or Conquest? the Economics of Empire Building (February 2001). NBER Working Paper No. w8109, Available at SSRN: https://ssrn.com/abstract=258508

Juan J. Mendoza

SUNY at Buffalo, College of Arts & Sciences, Department of Economics ( email )

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