Has globalization lessened the importance of physical distance? For economic shocks, new research suggests ‘yes’

New research adds evidence to a common thesis offered after the end of the Cold War that globalization was making physical distance economically obsolete.

By: Josh Ederington, Miami University and Jenny Minier, Miami University, The Conversation

Outlets: The Conversation

Published: February 6, 2026

Words: 896

Last Updated: 1 month, 1 week ago

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By Josh Ederington, Miami University and Jenny Minier, Miami University

National economies are increasingly moving in sync and responding to the same booms and busts as a result of near-instantaneous communications and interdependent global supply chains. This is a sharp change from much of the 21st century, when economies were primarily affected by economic shocks in neighboring countries.

That’s what we found in a paper published in the journal Economic Letters, in which we calculated …

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