Geography and Intra-National Home Bias: U.S. Domestic Trade in 1949 and 2007

Nicholas Crafts and Alexander Klein ()

Studies in Economics from School of Economics, University of Kent

Abstract: This paper examines home bias in U.S. domestic trade in 1949 and 2007. We use a unique data set of 1949 carload waybill statistics produced by the Interstate Commerce Commission, and 2007 Commodity Flow Survey data. The results show that home bias was considerably smaller in 1949 than in 2007 and that home bias in 1949 was even negative for several commodities. We argue that the difference between the geographical distribution of the manufacturing activities in 1949 and that of 2007 is an important factor explaining the differences in the magnitudes of home-bias estimates in those years.

Keywords: intra-national home bias; spatial clustering; manufacturing belt; gravity equation (search for similar items in EconPapers)
JEL-codes: F14 F18 (search for similar items in EconPapers)
Date: 2013-02
New Economics Papers: this item is included in nep-geo and nep-int
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Related works:
Journal Article: Geography and intra-national home bias: U.S. domestic trade in 1949 and 2007 (2015)
Working Paper: Geography and Intra-National Home Bias: U.S. Domestic Trade in 1949 and 2007 (2013)
Working Paper: Geography and Intra-National Home Bias: U. S. Domestic Trade in 1949 and 2007 (2013)
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