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Innis Lecture: What separates us? Sources of resistance to globalization

Author

Listed:
  • 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 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. Qu'est‐ce qui nous sépare? Sources de résistance à la mondialisation. Les économistes ont estimé avec de plus en plus de sophistication des équations de gravité depuis quelques 50 ans. Des résultats robustes montrent que frontières et distances sont des freins au commerce beaucoup plus importants que ce qui peut être attribué aux droits de douane et aux coûts de transport. Nous suggérons donc que l'on étudie d' autres sources de résistance malgré les plus grandes difficultés de mesure et de modélisation qu'elles engendrent. A partir d'une revue sélective de la littérature, une explication unifiée semble s'imposer. Un héritage historique d'isolement et de conflit a forgé une économie mondiale dans laquelle ni les goûts ni l'information ne sont répartis de façon homogène. Les différences culturelles et les coûts informationnels se manifestent le plus fortement aux frontières et par la distance.

Suggested Citation

  • Keith Head & Thierry Mayer, 2013. "Innis Lecture: What separates us? Sources of resistance to globalization," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 46(4), pages 1196-1231, November.
    • Handle: RePEc:wly:canjec:v:46:y:2013:i:4:p:1196-1231
    DOI: 10.1111/caje.12055
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