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What Separates Us? Sources of Resistance to Globalization

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  • Keith Head

    (Sauder School of Business (Columbia University))

  • Thierry Mayer

    (Département d'économie)

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.

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  • Keith Head & Thierry Mayer, 2013. "What Separates Us? Sources of Resistance to Globalization," Sciences Po publications info:hdl:2441/443fbihfmj8, Sciences Po.
  • Handle: RePEc:spo:wpmain:info:hdl:2441/443fbihfmj8h58a4ceedn30ogb
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    Keywords

    globalization gap; resistance; border effects;
    All these keywords.

    JEL classification:

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

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