It's a Big World after All: On the Economic Impact of Location and Distance

Posted: 17 Mar 2009

See all articles by Steven Brakman

Steven Brakman

University of Groningen - Department of Economics; CESifo (Center for Economic Studies and Ifo Institute)

Charles van Marrewijk

Utrecht University - School of Economics

Date Written: November 2008

Abstract

Thomas Friedman, a very influential and widely read journalist (author of The World is Flat), argues that distance is no longer a dominant characteristic of the world economy. Competition is thought to be a race to the bottom, with the lowest wage countries as the big winners. In contrast, using various methods and data sets, we show that many threats of global competition for the position of the traditionally developed (Organization for Economic Cooperation and Development) countries are unwarranted, that distance still dominates all aspects of international trade and that there is little evidence of income convergence.

Keywords: income levels, convergence, trade, distance, leapfrogging, E0, F0, N0, O0

Suggested Citation

Brakman, Steven and van Marrewijk, Charles, It's a Big World after All: On the Economic Impact of Location and Distance (November 2008). Cambridge Journal of Regions, Economy and Society, Vol. 1, Issue 3, pp. 411-437, 2008. Available at SSRN: https://ssrn.com/abstract=1361409 or http://dx.doi.org/10.1093/cjres/rsm006

Steven Brakman (Contact Author)

University of Groningen - Department of Economics ( email )

P.O. Box 800
9700 AV Groningen
Netherlands
+31 50 363 3746 (Phone)
+31 50 363 3730 (Fax)

CESifo (Center for Economic Studies and Ifo Institute)

Poschinger Str. 5
Munich, DE-81679
Germany

Charles Van Marrewijk

Utrecht University - School of Economics ( email )

Kriekenpitplein 21-22
Adam Smith Building
Utrecht, 3584 EC
Netherlands
*31-(0)30-2539810 (Phone)

HOME PAGE: http://www.charlesvanmarrewijk.nl

Register to save articles to
your library

Register

Paper statistics

Abstract Views
220
PlumX Metrics