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dc.contributor.author Gancia, Gino A.
dc.contributor.author Ponzetto, Giacomo A. M.
dc.contributor.author Ventura, Jaume
dc.date.accessioned 2021-06-10T11:58:14Z
dc.date.available 2021-06-10T11:58:14Z
dc.date.issued 2021-06
dc.identifier.uri http://hdl.handle.net/10230/47844
dc.description.abstract 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.
dc.format.mimetype application/pdf
dc.language eng
dc.language.iso eng
dc.subject.other Globalization
dc.subject.other Political structure
dc.subject.other Size of countries
dc.subject.other International unions
dc.title Globalization and political structure
dc.type info:eu-repo/semantics/workingPaper
dc.rights.accessRights info:eu-repo/semantics/openAccess

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