Falling Walls and Lifting Curtains: Analysis of Border Effects in Transition Countries

Yener Kandogan ()

No 821, William Davidson Institute Working Papers Series from William Davidson Institute at the University of Michigan

Abstract: Since McCallum’s (1995) finding of surprisingly high border effect on trade between US and Canada, there have been a number of studies on other parts of the world, and improvements made to the gravity model to accurately measure this effect. This paper suggests some other modifications to the model, and applies it to a region of the world that presents a distinctly interesting case. Changes in border effects of formerly socialist countries in Central and East Europe, and countries in the former Soviet Union are analyzed during 1976-2002 at country and sectoral levels, and also with respect to blocs of countries. A discussion on cross-country variations in border effects follows the computations.

Keywords: Gravity models; integration; disintegration (search for similar items in EconPapers)
JEL-codes: F14 F15 P20 P33 (search for similar items in EconPapers)
Pages: pages
Date: 2006-03-01
New Economics Papers: this item is included in nep-int and nep-tra
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