The return of the border walls

Vetonatus K. Kamwela, Binyam Afewerk Demena and Peter A.G. van Bergeijk

Applied Economics, 2024, vol. 56, issue 52, 6584-6597

Abstract: Since the early 2000s, border walls and fences have proliferated and become a global phenomenon with about a third of the countries having at least one wall or fence along its borders. Taking proper account for endogeneity, phasing-in effects and reverse causality, our gravity model for the years 1990–2017 (118 countries) finds a stronger trade-reducing impact of physical border protection structures ranging from 59% to 72%. This impact of physical border protection measures is non-monotonic: the immediate walls effect is insignificant but over the first 4 years after the creation of a wall, it starts to slash trade flows strongly and significantly.

Date: 2024
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DOI: 10.1080/00036846.2023.2275218

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