òòò½Íø Review
ISSN 0002-8282 (Print) | ISSN 1944-7981 (Online)
The Economic Significance of National Border Effects
òòò½Íø Review
vol. 93,
no. 4, September 2003
(pp. 1291–1312)
Abstract
To address the economic significance of national border effects, this paper provides evidence on two fundamental questions: (1) Do large border effects arise because of high perceived-price wedges between foreign and domestic products, or because imports and domestic goods are very close substitutes?; and (2) If price wedges are important, do they reflect distortionary barriers to trade or do they arise from nondistortionary factors, such as differences in transactions costs or product characteristics? I conclude that, while border effects may imply barriers, welfare costs, and a role for policy, distortions are probably not as substantial as initial border results suggested. (JEL F1)Citation
Evans, Carolyn, L. 2003. "The Economic Significance of National Border Effects." òòò½Íø Review 93 (4): 1291–1312. DOI: 10.1257/000282803769206304Additional Materials
JEL Classification
- F14 Empirical Studies of Trade
- F12 Models of Trade with Imperfect Competition and Scale Economies; Fragmentation