What separates us? Sources of resistance to globalization

Thierry Mayer and Keith Head

No 9614, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: With increasing sophistication, economists have been estimating gravity equations for five decades. Robust evidence shows that borders and distance impede trade by much more than tariffs or transports costs can explain. We therefore advocate investigation of other sources of resistance, despite the greater difficulty involved in measuring and modeling them. From our selective review of recent findings, a unifying explanation emerges. A legacy of historical isolation and confl ict forged a world economy in which neither tastes nor information are homogeneously distributed. Cultural difference and inadequate information manifest themselves most strongly at national borders and over distance.

Keywords: Trade; Gravity; Distance; Borders; Globalization; History (search for similar items in EconPapers)
JEL-codes: F1 (search for similar items in EconPapers)
Date: 2013-08
New Economics Papers: this item is included in nep-geo, nep-his and nep-int
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Citations: View citations in EconPapers (149)

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Journal Article: What separates us? Sources of resistance to globalization (2013)
Working Paper: What Separates Us? Sources of Resistance to Globalization (2013)
Working Paper: What Separates Us? Sources of Resistance to Globalization (2013)
Working Paper: What Separates Us? Sources of Resistance to Globalization (2013)
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