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Is the international border effect larger than the domestic border effect? Evidence from U.S. trade
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Coughlin, Cletus C. and Novy, Dennis (2009) Is the international border effect larger than the domestic border effect? Evidence from U.S. trade. In: Midwest Economic Meetings : International Trade Fall 2009, Penn State University, 30 Oct-01 Nov 2009 (Unpublished)
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Abstract
Many studies have found that international borders represent large barriers to trade. But how do international borders compare to domestic border barriers? We investigate international and domestic border barriers in a unified framework. We consider a unique data set of exports from individual U.S. states to foreign countries and combine it with trade flows within and between U.S. states. After controlling for distance and country size, we find that relative to state-to-state trade, crossing an individual U.S. state’s domestic border entails a larger trade barrier than crossing the international U.S. border. This finding highlights the concentration of trade flows at the local level and the importance of factors such as informational barriers and transportation costs even for the relatively short distances associated with state-to-state trade.
| Item Type: | Conference Item (Paper) |
|---|---|
| Subjects: | H Social Sciences > HB Economic Theory H Social Sciences > HF Commerce |
| Divisions: | Faculty of Social Sciences > Economics |
| Date: | 30 October 2009 |
| Status: | Not Peer Reviewed |
| Publication Status: | Unpublished |
| Access rights to Published version: | Open Access |
| Funder: | Economic and Social Research Council (ESRC) |
| Grant number: | RES-000-22-3112 |
| Version or Related Resource: | Coughlin, Cletus C. and Novy, Dennis (2009). Is the international border effect larger than the domestic border effect? Evidence from U.S. trade. CESifo Economic Studies Conference on Measuring Economic Integration. CESifo Conference Centre, Munich, 18-19 Feb 2011. |
| Conference Paper Type: | Paper |
| Title of Event: | Midwest Economic Meetings : International Trade Fall 2009 |
| Type of Event: | Conference |
| Location of Event: | Penn State University |
| Date(s) of Event: | 30 Oct-01 Nov 2009 |
| Related URLs: | |
| URI: | http://wrap.warwick.ac.uk/id/eprint/44833 |
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