Tornar a Working Papers

Paper #1513

Títol:
Globalization and political structure
Autors:
Gino Gancia, Giacomo A. M. Ponzetto i Jaume Ventura
Data:
Agost 2016
Resum:
This paper develops a theoretical framework to study the interaction between globalization and political structure. We show that political structure adapts in a non- monotonic way to declining transport costs. Borders hamper trade. At an earlier stage, the political response to expanding trade opportunities consists of removing borders by increasing country size. At a later stage, instead, it consists of removing the cost of borders by creating international unions. This leads to a reduction in country size. Moreover, diplomacy replaces conquest as a tool to ensure market access. These predictions are consistent with historical evidence on trade, territorial changes and membership of international unions.
Paraules clau:
Globalization, political structure, size of countries, international unions.
Codis JEL:
D71, F15, F55, H77, O57
Àrea de Recerca:
Macroeconomia i Economia Internacional
Publicat a:
Journal of the European Economic Association, 20 (3), 2022, 1276-1310

Descarregar el paper en format PDF