Trade Flows: Evidence of Globalisation or Regionalism? A Rejoinder
Cambridge Journal of Economics, Vol. 36 (2) 2012, Spring
Posted: 13 Apr 2012
Date Written: April 12, 2012
We consider the relative effects of globalisation and regionalism in the context of recent developments in the world economy. We extent and advance the analysis of Chortareas and Pelagidis (2004) using the recently updated Penn World Tables data. This allows considering the recent ‘golden era’ of globalisation, great moderation and the ‘Washington consensus’. We produce evidence that corroborates the findings of Chortareas and Pelagidis (2004). We find, however, that in the 1990s and in the new millennium globalisation dynamics outpace regionalism. Nevertheless, regionalism displays resilience and in a potential de-globalisation context it is more likely to dominate over globalism.
Keywords: Globalisation, Regionalism, Convergence, De-globalisation
JEL Classification: F20, F150, F150
Suggested Citation: Suggested Citation