Do politically and economically similar states in the U.S.A. trade more with each other?

Nawaraj S. Paudel and Sajal Lahiri

Economics Bulletin, 2021, vol. 41, issue 3, 1541-1552

Abstract: Estimating a Gravity model for trade between the U.S. states, we find that politically and economically similar states trade more among themselves. We use two different definitions of political similarity based on outcomes in Presidential and Gubernatorial elections, and they all give similar results. For economic similarities, we follow the literature on Linder's hypothesis.

Keywords: Inter-state trade; U.S.A; Gravity model; Politics; Linder's hypothesis (search for similar items in EconPapers)
JEL-codes: F1 (search for similar items in EconPapers)
Date: 2021-09-17
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