Do state borders matter for U.S. intranational trade?
) Canadian Journal of Economics, 2007, vol. 40, issue 1, pages 93-126 Abstract: Empirical evidence of the impact of borders on international trade flows using the gravity equation approach abounds. This paper examines the empirical relevance of state borders in U.S. interstate trade for various specifications of the gravity equation. We find a large and economically significant subnational border effect for some specifications. However, two model specifications drastically reduce (if not eliminate) the border effect: (i) dynamic panel specifications controlling for past levels of trade and (ii) models conditioning on internal migration. JEL-codes: C23 F14 F16 J61 (search for similar items in EconPapers) Date: 2007 View citations in EconPapers Track citations by RSS feed Downloads: (external link) http://economics.ca/cgi/xms?jab=v40n1/CJEv40n1p0093.pdf Full text (application/pdf) Available to subscribers only. Alternative access through JSTOR and Ingenta. Related works: This item may be
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