Globalization and Political Structure

• 成果类型: Article
• 署名作者: Gancia, Gino; Ponzetto, Giacomo A. M.; Ventura, Jaume
• 署名单位: University of London; Queen Mary University London; Centre de Recerca en Economia Internacional (CREI); Pompeu Fabra University; Barcelona School of Economics; Centre de Recerca en Economia Internacional (CREI); Pompeu Fabra University
• 刊物名称: JOURNAL OF THE EUROPEAN ECONOMIC ASSOCIATION
• ISSN/ISSBN: 1542-4766
• DOI: 10.1093/jeea/jvac019
• 发表日期: 2022
• 页码: 1276-1310
• 关键词: size; TRADE; ECONOMY; state

摘要

This paper develops a theoretical framework to study the interaction between globalization and political structure. We show that political structure adapts in a non-monotonic way to declining transport costs. Borders hamper trade. At an earlier stage, the political response to expanding trade opportunities consists of removing borders by increasing country size. At a later stage, instead, it consists of removing the cost of borders by creating international unions. This leads to a reduction in country size. Moreover, diplomacy replaces conquest as a tool to ensure market access. These predictions are consistent with historical evidence on trade, territorial changes, and membership of international unions.