Intra‐national Trade Costs: Measurement and Aggregation

Delina Agnosteva, James Anderson and Yoto Yotov

No 2014-2, School of Economics Working Paper Series from LeBow College of Business, Drexel University

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.

Keywords: Intra- and Inter-regional Trade Costs; Border Effects; Aggregation; Canada (search for similar items in EconPapers)
JEL-codes: F13 F14 F16 (search for similar items in EconPapers)
Pages: 51 pages
Date: 2014-01-24
New Economics Papers: this item is included in nep-int and nep-sog
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (48)

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Working Paper: Intra-national Trade Costs: Measurement and Aggregation (2014)
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Persistent link: https://EconPapers.repec.org/RePEc:ris:drxlwp:2014_002

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