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National borders and international trade: evidence from the European Union

Volker Nitsch ()

Canadian Journal of Economics, 2000, vol. 33, issue 4, 1091-1105

Abstract: In this paper the impact of national borders on international trade within the European Union is considered. Using a gravity model, I find that, averaged over all EU countries, intranational trade is about ten times as high as international trade with an EU partner country of similar size and distance. This relatively strong home bias suggests that even within the European Union national borders still have a decisive impact on trade patterns.

JEL-codes: F02 F14 F15 O52 (search for similar items in EconPapers)
Date: 2000
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Handle: RePEc:cje:issued:v:33:y:2000:i:4:p:1091-1105