TY - JOUR AU - Irwin,Douglas A. TI - The Impact of Federation on Australia's Trade Flows JF - National Bureau of Economic Research Working Paper Series VL - No. 12160 PY - 2006 Y2 - April 2006 UR - http://www.nber.org/papers/w12160 L1 - http://www.nber.org/papers/w12160.pdf N1 - Author contact info: Douglas A. Irwin Department of Economics Dartmouth College Hanover, NH 03755 Tel: 603/646-2942 Fax: 603/646-2122 E-Mail: douglas.irwin@dartmouth.edu AB - In 1901, six Australian states joined together in political and economic union, creating an internal free trade area and adopting a common external tariff. This paper investigates the impact of federation on Australia's internal and international trade flows by studying changes in the "border effect" over this time. This is possible because Australian states reported intra-Australian trade prior to 1901 and for eight years after federation. The results indicate that federation itself produced little change in Australia's trade patterns, but that the border effect increased substantially between 1906 and 1909 when the protectionist Lyne Tariff was imposed. ER -