Border effect (Ofer Abarbanel online library)

Border effects refer to asymmetries in trade patterns between cities and regions of different countries that share a national border and those that are located in the same country. Usually, trade volume is much lesser between the former cities and regions.[1]

Economic integration (as in the EU) may be a solution to overcome these effects. A 2017 meta-analysis of 1,271 estimates of the border effect finds that borders reduce trade by one third. [2]

References

  1. ^Border Effects Among EU Countries: Do National Identity and Cultural Differences Matter?
  2. ^“Do Borders Really Slash Trade? A Meta-Analysislast=” (PDF). doi:10.1057/s41308-016-0001-5

 

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