The Demise of the Nation State?

17 Pages Posted: 15 Feb 2006

See all articles by Vito Tanzi

Vito Tanzi

International Monetary Fund (IMF); National Bureau of Economic Research (NBER)

Date Written: August 1998


The globalization of economic activities that is characterizing many economies raises questions about the future of the nation state. This paper discusses this trend and shows that cross-frontiers spillovers have become more frequent and have increased the need for international agreements and international organizations to deal with them. It concludes that a continuation of current trends would increase the importance of subnational government while reducing (in the economic sphere) the importance of national governments.

Keywords: globalization, spillovers, government role, fiscal federalism

JEL Classification: E61, F33, F42, H11, H23, H70

Suggested Citation

Tanzi, Vito, The Demise of the Nation State? (August 1998). IMF Working Paper No. 98/120, Available at SSRN:

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