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What Separates Us? Sources of Resistance to Globalization

Author

Listed:
  • Keith Head

    (Sauder - Sauder School of Business [British Columbia] - UBC - University of British Columbia [Canada])

  • Thierry Mayer

    (ECON - Département d'économie (Sciences Po) - Sciences Po - Sciences Po - CNRS - Centre National de la Recherche Scientifique)

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 difficult involved in measuring and modelling 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," Post-Print hal-03460713, HAL.
    • Handle: RePEc:hal:journl:hal-03460713
    DOI: 10.1111/caje.12055
    Note: View the original document on HAL open archive server: https://sciencespo.hal.science/hal-03460713v1
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    JEL classification:

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

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