Seminar by Giacomo Ponzetto

SALA SEMINARI – 1° PIANO, PALAZZO LEVI CASES, VIA DEL SANTO 33 - ORE 12.30

02.10.2018

Seminar by Giacomo Ponzetto, Universidad Pompeu Fabra

Title: “Globalization and Political Structure” (co-authored by Gino Gancia and Jaume Ventura)

Abstract
This paper develops a theoretical framework to study the interaction between globalization and political structure. We show that political structure adapts to expanding trade opportunities in a non-monotonic way. Borders hamper trade. In its early stages, the political response to globalization consists of removing borders by increasing coun- try size. In its later stages, however, the political response to globalization is to remove borders by creating international unions, and this leads to a reduction in country size. Moreover, negotiation replaces war as a tool to ensure market access. These predictions are consistent with historical evidence on trade, territorial expansion and war.