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Source: The Conversation
Summary
A study published in Economic Letters found that physical distance has become less important in determining the impact of economic shocks on countries. The research analyzed data on gross domestic product for 70 countries over 60 years and found that business cycles have become more synchronized globally, particularly since 2000. This has implications for economic policy discussions, with a focus on supply chain resilience and globalized economic shocks.
Our Reading
The numbers tell one story. For decades, economists have discussed the “death of distance” and how globalization would erase physical boundaries. But the numbers show that while trade and globalization have increased, physical distance still matters. The
