Political Limits to Globalization
AbstractDespite the major advances in information technology that have shaped the recent wave of globalization, openness to trade is still a political choice, and trade policy can change with shifts in domestic political equilibria. This paper suggests that a particular threat and a limiting factor to globalization and its future developments may be militarist sentiments that appear to be on the rise among many nations around the globe today. We proxy militarism by spending on the military and the size of the military, and document that over the past 20 years, countries experiencing greater increases in militarism according to these measures have had lower growth in trade. Focusing on bilateral trade flows, we also show that controlling flexibly for country trends, a pair of countries jointly experiencing greater increases in militarism has lower growth in bilateral trade.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 15694.
Date of creation: Jan 2010
Date of revision:
Publication status: published as Daron Acemoglu & Pierre Yared, 2010. "Political Limits to Globalization," American Economic Review, American Economic Association, vol. 100(2), pages 83-88, May.
Note: IFM ME POL
Contact details of provider:
Postal: National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.
Web page: http://www.nber.org
More information through EDIRC
Other versions of this item:
- F01 - International Economics - - General - - - Global Outlook
- F10 - International Economics - - Trade - - - General
- F52 - International Economics - - International Relations, National Security, and International Political Economy - - - National Security; Economic Nationalism
This paper has been announced in the following NEP Reports:
- NEP-ALL-2010-02-20 (All new papers)
- NEP-CBA-2010-02-20 (Central Banking)
- NEP-CDM-2010-02-20 (Collective Decision-Making)
- NEP-DEV-2010-02-20 (Development)
- NEP-INT-2010-02-20 (International Trade)
- NEP-LAM-2010-02-20 (Central & South America)
- NEP-POL-2010-02-20 (Positive Political Economics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- K. H. O'Rourke & R. Sinnott, 2001.
"The Determinants of Individual Trade Policy Preferences: International Survey Evidence,"
CEG Working Papers
20016, Trinity College Dublin, Department of Economics.
- K. H. O'Rourke & R. Sinnott, 2001. "The Determinants of Individual Trade Policy Preferences: International Survey Evidence," Trinity Economics Papers 200110, Trinity College Dublin, Department of Economics.
- Barry Eichengreen & Douglas A. Irwin, 2009.
"The Slide to Protectionism in the Great Depression: Who Succumbed and Why?,"
NBER Working Papers
15142, National Bureau of Economic Research, Inc.
- Eichengreen, Barry & Irwin, Douglas A., 2010. "The Slide to Protectionism in the Great Depression: Who Succumbed and Why?," The Journal of Economic History, Cambridge University Press, vol. 70(04), pages 871-897, December.
- Anna Maria Mayda & Dani Rodrik, 2001.
"Why Are Some People (and Countries) More Protectionist Than Others?,"
NBER Working Papers
8461, National Bureau of Economic Research, Inc.
- Mayda, Anna Maria & Rodrik, Dani, 2005. "Why are some people (and countries) more protectionist than others?," European Economic Review, Elsevier, vol. 49(6), pages 1393-1430, August.
- Mayda, Anna Maria & Rodrik, Dani, 2001. "Why are Some People (and Countries) More Protectionist than Others?," CEPR Discussion Papers 2960, C.E.P.R. Discussion Papers.
- Anna Maria Mayda (Georgetown University) and Dani Rodrik (Harvard University), 2005. "Why are some people (and countries) more protectionist than others?," Working Papers gueconwpa~05-05-11, Georgetown University, Department of Economics.
- Ronald Findlay & Kevin H. O'Rourke, 2007.
"Power and Plenty: Trade, War and the World Economy in the Second Millennium (Preface),"
Trinity Economics Papers
tep0107, Trinity College Dublin, Department of Economics.
- Ronald Findlay & Kevin H. O'Rourke, 2007. "Power and Plenty: Trade, War and the World Economy in the Second Millennium (Preface)," The Institute for International Integration Studies Discussion Paper Series iiisdp205, IIIS.
- Martin, Philippe & Mayer, Thierry & Thoenig, Mathias, 2005.
"Make Trade not War?,"
CEPR Discussion Papers
5218, C.E.P.R. Discussion Papers.
Blog mentionsAs found by EconAcademics.org, the blog aggregator for Economics research:
- Les limites politiques de la mondialisation
by Yannick Bourquin in Que disent les économistes? on 2010-06-23 04:00:00
- Sebastian Galiani & Gustavo Torrens, 2013.
"Autocracy, Democracy and Trade Policy,"
NBER Working Papers
19321, National Bureau of Economic Research, Inc.
- Lan, Xiaohuan & Li, Ben, 2011. "Nationalism and international trade: theory and evidence," MPRA Paper 36412, University Library of Munich, Germany, revised 03 Feb 2012.
- Sergey Mityakov & Heiwai Tang & Kevin K. Tsui, 2012.
"InternationalPolitics and Import Diversification in the Second Wave of Globalization,"
Discussion Papers Series, Department of Economics, Tufts University
0770, Department of Economics, Tufts University.
- Sergey Mityakov & Heiwai Tang & Kevin K. Tsui, 2012. "International Politics and Import Diversification in the Second Wave of Globalization," Development Working Papers 342, Centro Studi Luca d\'Agliano, University of Milano, revised 13 Nov 2012.
- Imai, Masami & Shelton, Cameron A., 2011. "Elections and political risk: New evidence from the 2008 Taiwanese Presidential Election," Journal of Public Economics, Elsevier, vol. 95(7), pages 837-849.
- Sergey Mityakov & Heiwai Tang & Kevin K. Tsui, 2011. "Geopolitics, Global Patterns of Oil Trade, and China¡¦s Oil Security Quest," Working Papers 322011, Hong Kong Institute for Monetary Research.
- Seitz, Michael & Tarasov, Alexander & Zakharenko, Roman, 2013.
"Trade Costs, Conflicts, and Defense Spending,"
Discussion Paper Series of SFB/TR 15 Governance and the Efficiency of Economic Systems
404, Free University of Berlin, Humboldt University of Berlin, University of Bonn, University of Mannheim, University of Munich.
- Yazdani, Naveed & Mamoon, Dawood, 2012. "The economics and philosophy of globalization," MPRA Paper 36091, University Library of Munich, Germany.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ().
If references are entirely missing, you can add them using this form.