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Estimating border effects : the impact of spatial aggregation
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Coughlin, Cletus C. and Novy, Dennis (2021) Estimating border effects : the impact of spatial aggregation. International Economic Review, 62 (4). pp. 1453-1487. doi:10.1111/iere.12520
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WRAP-estimating-border-effects-impact-spatial-aggregation-Novy-2020.pdf - Accepted Version - Requires a PDF viewer. Download (2489Kb) | Preview |
Official URL: https://doi.org/10.1111/iere.12520
Abstract
Trade data are typically aggregated across space. In this paper, we investigate the sensitivity of gravity estimation to spatial aggregation. We build a model in which micro regions are aggregated into macro regions. We then apply the model to the large literature on border effects in domestic and international trade. Our theory shows that aggregation leads to border effect heterogeneity. Larger regions and countries are systematically associated with smaller border effects. We test our theory with aggregate and industry-level trade flows for U.S. states. Our results confirm the model's predictions, with strong heterogeneity patterns.
| Item Type: | Journal Article | |||||||||
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| Subjects: | H Social Sciences > HA Statistics H Social Sciences > HF Commerce J Political Science > JC Political theory |
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| Divisions: | Faculty of Social Sciences > Economics | |||||||||
| Library of Congress Subject Headings (LCSH): | International trade, Boundaries -- Economic aspects, Spatial analysis (Statistics) | |||||||||
| Journal or Publication Title: | International Economic Review | |||||||||
| Publisher: | Wiley-Blackwell Publishing, Inc. | |||||||||
| ISSN: | 0020-6598 | |||||||||
| Official Date: | November 2021 | |||||||||
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| Volume: | 62 | |||||||||
| Number: | 4 | |||||||||
| Page Range: | pp. 1453-1487 | |||||||||
| DOI: | 10.1111/iere.12520 | |||||||||
| Status: | Peer Reviewed | |||||||||
| Publication Status: | Published | |||||||||
| Reuse Statement (publisher, data, author rights): | This is the peer reviewed version of the following article: C. COUGHLINAND, C. and NOVY, D. (2021), ESTIMATING BORDER EFFECTS:THE IMPACT OF SPATIAL AGGREGATION. International Economic Review. Accepted Author Manuscript, which has been published in final form at https://doi.org/10.1111/iere.12520. This article may be used for non-commercial purposes in accordance with Wiley Terms and Conditions for Use of Self-Archived Versions. | |||||||||
| Access rights to Published version: | Open Access | |||||||||
| RIOXX Funder/Project Grant: |
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