Intra-national Trade Costs: Measurement and Aggregation

Delina Agnosteva, James Anderson and Yoto Yotov

No 19872, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: We develop and apply a procedure to flexibly estimate intra-national border barriers and intra-regional trade costs. Bilateral border barriers very significantly depress Canadian inter-provincial trade for some pairs, though the overall effect is rather small. Bilateral distance imposes much larger inter-provincial trade costs. Contiguity between provinces accounts for little. Intra-regional trade cost variation affects relative bilateral costs and trade flows, and alters comparative statics except in a neutral case rejected by the data. Consistent trade cost aggregation procedures are developed and applied for groups of regions and/or sectors.

JEL-codes: F1 R1 (search for similar items in EconPapers)
Date: 2014-01
New Economics Papers: this item is included in nep-int
Note: ITI
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Citations: View citations in EconPapers (65)

Published as Agnosteva, Delina E., James E. Anderson, and Yoto V. Yotov, "Intra-National Trade Costs: Assaying Regional Frictions," European Economic Review, 2019, 112 (February), 32-50.

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Working Paper: Intra‐national Trade Costs: Measurement and Aggregation (2014)
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