The border puzzle is solved

Martin Andresen

Applied Economics Letters, 2009, vol. 16, issue 16, 1617-1620

Abstract: This article solves the border puzzle that asks why countries have such a strong preference for consuming their own goods. After replicating the negative impact of the border on Canada-United States international trade using the methods of previous research, it is shown that past estimates that find the border to be a significant barrier to international trade are the result of statistical misspecification.

Date: 2009
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DOI: 10.1080/13504850701591317

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