Within U.S. trade and the long shadow of the american secession

Gabriel Felbermayr and Jasmin Gröschl
Authors registered in the RePEc Author Service: Jasmin Groeschl

Munich Reprints in Economics from University of Munich, Department of Economics

Abstract: Using data from U.S. commodity flow survey, we show that the historical Union-Confederacy border lowers contemporaneous trade between U.S. states by about 13%. The finding is robust over econometric models, survey waves, or aggregation levels. Including contemporaneous controls, such as network or institutional variables, lowers the estimate only slightly. Historical variables, such as slavery, do not explain the effect. Adding U.S. states unaffected by the Civil War, we argue that the friction is not merely reflecting unmeasured North-South differences. Finally, the border effect is larger for differentiated than for homogeneous goods, stressing the potential role for cultural factors and trust

JEL-codes: F15 N72 N92 Z10 (search for similar items in EconPapers)
Date: 2014
References: Add references at CitEc
Citations: View citations in EconPapers (6)

Published in Economic Inquiry 1 52(2014): pp. 382-404

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Related works:
Journal Article: WITHIN U.S. TRADE AND THE LONG SHADOW OF THE AMERICAN SECESSION (2014)
Working Paper: Within US Trade and the Long Shadow of the American Secession (2011)
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Persistent link: https://EconPapers.repec.org/RePEc:lmu:muenar:20587

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