Globalization and Political Structure

Gino Gancia

No 644, 2014 Meeting Papers from Society for Economic Dynamics

Abstract: Globalization is rapidly changing economic borders and yet political borders change only slowly. In this paper we study the nature and consequences of this growing mismatch. We show that globalization requires a political structure that redistributes power away from the centralized jurisdictions or states and towards a new set of overlapping jurisdictions that are both larger and smaller than existing states. Our theory suggests that globalization provides a simple yet powerful explanation for the rise of large nation-states followed by the creation of international authorities (such as the EU) together with a process of political fragmentation within states.

Date: 2014
New Economics Papers: this item is included in nep-cta and nep-pol
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Related works:
Journal Article: Globalization and Political Structure (2022)
Working Paper: Globalization and political structure (2021)
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Persistent link: https://EconPapers.repec.org/RePEc:red:sed014:644

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