John Helliwell

How Much Do National Borders Matter?

Economics Prof. John Helliwell challenges the popular perception that
the world has become so globalized there is no economic importance left to national
borders. The evidence in his book shows that the extent of globalization is
far less than is generally thought.

“There has come to be a large gap between perception and reality,” Helliwell
says.

His surveys show people falsely believe Canada’s trade ties to the United
States to be tighter than those among the provinces. In fact, Helliwell’s evidence
shows that interprovincial merchandise trade linkages are more than 10 times
as intense as those between the provinces and U.S. states.

Helliwell also found movements of people and services are even more focused
on national rather than international destinations.

“It is true for Canada and the U.S. and also for other industrial and developing
countries that their internal economic structures are more intense than are
international linkages,” Helliwell says.