Borders within Europe

Ugur Yesilbayraktar, Marta Santamaría and Jaume Ventura

No 1229, Working Papers from Barcelona School of Economics

Abstract: Are country borders still an impediment to trade flows within Europe? Using a microlevel survey with 3 million annual shipments of goods, we construct a matrix of bilateral trade for 269 European regions. Take two similar region pairs, one containing regions in different countries and the other containing regions in the same country. The market share of the origin region in the destination region for the international pair is 17.5 percent that of the intranational pair. Across industries, this estimate ranges from 12.3 to 38.9 percent. For post-1910 borders, this estimate is 28.8 percent. The implication is clear: Europe is far from having a single market.

Keywords: European integration; border effect; regional trade (search for similar items in EconPapers)
JEL-codes: D71 F15 F55 H77 O57 (search for similar items in EconPapers)
Date: 2021-01
New Economics Papers: this item is included in nep-geo and nep-int
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Citations: View citations in EconPapers (4)

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