Gravity with google maps: the border puzzle revisited

Sebastian Benz

Economics Bulletin, 2013, vol. 33, issue 3, 2414-2421

Abstract: I calculate road travel times between the capitals of US states and Canadian provinces with Google Maps. With this measure of trade cost I estimate the US-Canada border effect for aggregate and industry-level trade flows in line with the method introduced by Anderson and van Wincoop (2003), as well as using linar fixed effects and Poisson estimation. I find a high degree of heterogeneity in the resulting coefficients.

Keywords: Gravity; Border puzzle; Multilateral resistance (search for similar items in EconPapers)
JEL-codes: F1 (search for similar items in EconPapers)
Date: 2013-09-17
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