Globalization and Political Structure

Gino Gancia, Giacomo Ponzetto and Jaume Ventura

Journal of the European Economic Association, 2022, vol. 20, issue 3, 1276-1310

Abstract: 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.

Date: 2022
References: View complete reference list from CitEc
Citations: View citations in EconPapers (7)

Downloads: (external link)
http://hdl.handle.net/10.1093/jeea/jvac019 (application/pdf)
Access to full text is restricted to subscribers.

Related works:
Working Paper: Globalization and political structure (2021)
Working Paper: Globalization and political structure (2017)
Working Paper: Globalization and Political Structure (2016)
Working Paper: Globalization and Political Structure (2016)
Working Paper: Globalization and Political Structure (2016)
Working Paper: Globalization and Political Structure (2014)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:oup:jeurec:v:20:y:2022:i:3:p:1276-1310.

Access Statistics for this article

Journal of the European Economic Association is currently edited by Romain Wacziarg

More articles in Journal of the European Economic Association from European Economic Association
Bibliographic data for series maintained by Oxford University Press ().