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Border Effects and Border Regions: Lessons from the German Unification

Volker Nitsch

No 26291, Discussion Paper Series from Hamburg Institute of International Economics

Abstract: This paper examines data on trade flows between West German Bundesländer (federal states) and East Germany to explore the effect of national borders on trade. Although the data cover only a small fraction of intra-German trade flows, I find a home bias of about factor 2.2; West German shipments to East Germany are about 120% larger than deliveries to an otherwise similar foreign country. Based on this result, possible implications for border regions are discussed.

Keywords: International; Relations/Trade (search for similar items in EconPapers)
Pages: 26
Date: 2002
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (16)

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https://ageconsearch.umn.edu/record/26291/files/dp020203.pdf (application/pdf)

Related works:
Working Paper: Border Effects and Border Regions: Lessons from the German Unification (2004)
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Persistent link: https://EconPapers.repec.org/RePEc:ags:hwwadp:26291

DOI: 10.22004/ag.econ.26291

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