THE PRICE OF NATIONALISM - EVIDENCE FROM THE SOVIET-UNION

This paper investigates the effect of implicit subsidies from the Russ ian Republic to other republics within the former Soviet Union on voti ng behavior in the All-Union Referendum of March 1991. These subsidies comprised the difference between interrepublic trade balances at dome stic and world prices. A model of voting behavior incorporating effect s of ethnic composition and subsidies on voting yields the estimating equation. Regression results suggest voters are influenced more by eco nomics (subsidies) than by politics (ethnicity), although ethnicity wa s an important determinant of republican cooperation with Soviet autho rities. Analysis of estimation results suggests the level of implicit subsidies required to increase support for the Soviet regime from 60% to 75% would have equaled 10% of the Russian republic's GDP.