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Evolutionary Dynamics of Globalization

  • Naci Canpolat

    (Hacettepe University)

  • Hüseyin Ozel

    (Hacettepe University)

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    The expansion of markets –globalization– was reversed during early 20th century and unfettered markets gave in to the welfare state and central planning. But the markets have been striking back since the early 1980s. Governments are withdrawn from economic activities, and many structural market reforms are implemented. Now the question is: Can the forces that market expansion create again reverse this expansion? This paper seeks an answer to this question by constructing an evolutionary game theoretical framework in which market and “egalitarian” societies appear as evolutionarily stable states and shows that catastrophic events such as the Great Depression can indeed cause switch over between evolutionarily stable states.

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    File URL: http://www.tek.org.tr/dosyalar/Canpolat_Ozel_Evolutionary_Dynamics_of_Globalization.pdf
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    Paper provided by Turkish Economic Association in its series Working Papers with number 2008/16.

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    Length: 20 pages
    Date of creation: 2008
    Date of revision:
    Handle: RePEc:tek:wpaper:2008/16
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    1. Timothy Besley & Robin Burgess, 2003. "Halving Global Poverty," Journal of Economic Perspectives, American Economic Association, vol. 17(3), pages 3-22, Summer.
    2. Ernst Fehr & Klaus M. Schmidt, 1999. "A Theory Of Fairness, Competition, And Cooperation," The Quarterly Journal of Economics, MIT Press, vol. 114(3), pages 817-868, August.
    3. Peter H. Lindert & Jeffrey G. Williamson, 2001. "Does Globalization Make the World More Unequal?," NBER Working Papers 8228, National Bureau of Economic Research, Inc.
    4. Mayda, Anna Maria & O'Rourke, Kevin Hjortshøj & Sinnott, Richard, 2007. "Risk, Government and Globalization: International Survey Evidence," CEPR Discussion Papers 6354, C.E.P.R. Discussion Papers.
    5. Dani Rodrik, 1997. "Trade, Social Insurance, and the Limits to Globalization," NBER Working Papers 5905, National Bureau of Economic Research, Inc.
    6. Ann Harrison, 2006. "Globalization and Poverty," NBER Working Papers 12347, National Bureau of Economic Research, Inc.
    7. Gachter, Simon & Fehr, Ernst, 1999. "Collective action as a social exchange," Journal of Economic Behavior & Organization, Elsevier, vol. 39(4), pages 341-369, July.
    8. Xavier Sala-i-Martin, 2002. "The World Distribution of Income (estimated from Individual Country Distributions)," NBER Working Papers 8933, National Bureau of Economic Research, Inc.
    9. Alberto Alesina & Roberto Perotti, 1994. "The Welfare State and Competitiveness," NBER Working Papers 4810, National Bureau of Economic Research, Inc.
    10. O'Rourke, Kevin Hjortshøj, 2001. "Globalization and Inequality: Historical Trends," CEPR Discussion Papers 2865, C.E.P.R. Discussion Papers.
    11. Samuel Bowles, 1998. "Endogenous Preferences: The Cultural Consequences of Markets and Other Economic Institutions," Journal of Economic Literature, American Economic Association, vol. 36(1), pages 75-111, March.
    12. O Rourke, Kevin H. & Williamson, Jeffrey G., 2002. "When did globalisation begin?," European Review of Economic History, Cambridge University Press, vol. 6(01), pages 23-50, April.
    13. Bowles, Samuel, 1992. "Is income security possible in a capitalist economy? : An agency-theoretic analysis of an unconditional income grant," European Journal of Political Economy, Elsevier, vol. 8(4), pages 557-578, December.
    14. Akerlof, George A, 1980. "A Theory of Social Custom, of Which Unemployment May be One Consequence," The Quarterly Journal of Economics, MIT Press, vol. 94(4), pages 749-75, June.
    15. Ian M. Dobbs & Ian Molho, 1999. "Evolution and sub-optimal behaviour," Journal of Evolutionary Economics, Springer, vol. 9(2), pages 187-209.
    16. Kenneth Scheve & Matthew Slaughter, 2002. "Economic Insecurity and the Globalization of Production," NBER Working Papers 9339, National Bureau of Economic Research, Inc.
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