The Border Effect and the Non-Linear Relationship between Trade and Distance

Nuria Gallego and Carlos Llano Verduras

No 2014/06, Working Papers in Economic Theory from Universidad Autónoma de Madrid (Spain), Department of Economic Analysis (Economic Theory and Economic History)

Abstract: After the seminal paper by McCallum, various authors have estimated the effect of regional and national borders on trade. This paper digs deeper into the matter, estimating how the internal and external border effect is affected by the non-linear relation between trade and distance at different spatial levels, and the econometric procedure used to control for it. Our paper uses a novel dataset that captures intra- and inter-national truck shipments between Spanish regions and regions in eight European countries. To deal with this non-linearity, we use three alternative strategies —segmented distance, piecewise regressions and semi-parametric approaches— that achieve similar results.

Keywords: border effect; gravity equation; interregional trade; non-linearity; European integration. (search for similar items in EconPapers)
JEL-codes: F14 F15 (search for similar items in EconPapers)
Pages: 40 pages
Date: 2014-10
New Economics Papers: this item is included in nep-eur and nep-int
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
http://www.uam.es/departamentos/economicas/analecon/especifica/mimeo/wp20146.pdf
Our link check indicates that this URL is bad, the error code is: 404 Not Found (http://www.uam.es/departamentos/economicas/analecon/especifica/mimeo/wp20146.pdf [307 Moved Temporarily]--> https://www.uam.es/departamentos/economicas/analecon/especifica/mimeo/wp20146.pdf [301 Moved Permanently]--> https://www.uam.es/Economicas/AnalisisEconomicoTeoriaHistoria/1234888140248.htm/especifica/mimeo/wp20146.pdf)

Related works:
Journal Article: The Border Effect and the Nonlinear Relationship between Trade and Distance (2014)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:uam:wpaper:201406

Access Statistics for this paper

More papers in Working Papers in Economic Theory from Universidad Autónoma de Madrid (Spain), Department of Economic Analysis (Economic Theory and Economic History) Contact information at EDIRC.
Bibliographic data for series maintained by Andrés Maroto-Sánchez ( this e-mail address is bad, please contact ).