Border effects and the availability of domestic products abroad

Carolyn Evans

Canadian Journal of Economics, 2006, vol. 39, issue 1, 211-246

Abstract: Trade between countries could fall short of trade within a country because (1) the volume of international trade is less than the volume of domestic trade for a given product (the intensive margin); or (2) some goods that are sold domestically are simply not exported (the extensive margin). My theoretical model illustrates that either of these two factors could explain a given aggregate `border effect.' I examine the empirical relevance of this distinction by isolating the fraction of total domestic production attributable only to exporters, finding that around one-half of the border effect may be attributed to each explanation.

JEL-codes: F1 (search for similar items in EconPapers)
Date: 2006
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Citations: View citations in EconPapers (14)

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Working Paper: Border effects and the availability of domestic products abroad (2001)
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