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What Separates Us? Sources of Resistance to Globalization

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  • Keith Head
  • Thierry Mayer

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 transport costs can explain. We therefore advocate investigation of other sources of resistance, despite the greater difficult involved in measuring and modeling them. From our selective review of recent findings, a unifying explanation emerges. A legacy of historical isolation and conflict 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.

Suggested Citation

  • Keith Head & Thierry Mayer, 2013. "What Separates Us? Sources of Resistance to Globalization," Working Papers 2013-26, CEPII research center.
  • Handle: RePEc:cii:cepidt:2013-26
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    More about this item

    Keywords

    Globalization; Gravity; Cultural differences;
    All these keywords.

    JEL classification:

    • F10 - International Economics - - Trade - - - General

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