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Do state borders matter for U.S. intranational trade? The role of history and internal migration
Ist Teil von
The Canadian journal of economics, 2007-02, Vol.40 (1), p.93-126
Ort / Verlag
Malden, USA: Blackwell Publishing Inc
Erscheinungsjahr
2007
Link zum Volltext
Quelle
EBSCOhost Business Source Ultimate
Beschreibungen/Notizen
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.