NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

National Borders, Trade and Migration

John F. Helliwell

NBER Working Paper No. 6027 (Also Reprint No. r2198)
Issued in May 1997
NBER Program(s):   ITI

The paper first extends and reconciles recent estimates of the strikingly large effect of national borders on trade patterns. Estimates comparing trade among Canadian provinces with that between Canadian provinces and U.S. states show interprovincial trade in 1988-90 to have been more than twenty times as dense as that between provinces and states, with some evidence of a downward trend since, due to the post-FTA growth in trade between Canada and the United States. Using approximate data for the volumes and distances of internal trade in OECD countries, the 1988-92 border effect for unrelated OECD countries is estimated to exceed 12. Both types of data confirm substantial border effects, even after accounting for common borders and language, with the directly-measured data for interprovincial and province-state trade producing higher estimates." Initial estimates from a census-based gravity model of interprovincial and international migration show a much higher border effect for migration, with interprovincial migration among the Anglophone provinces almost 100 times as dense as that from U.S. states to Canadian provinces. Effects of migration on subsequent trade patterns are found for international but not for interprovincial trade, suggesting the existence of nationally-shared networks the large national border effects for trade flows.

download in pdf format
   (317 K)

email paper

This paper is available as PDF (317 K) or via email.

Machine-readable bibliographic record - MARC, RIS, BibTeX

Document Object Identifier (DOI): 10.3386/w6027

Published: Pacific Economic Review, vol. 3, no. 3, pp. 165-185, October 1997

Users who downloaded this paper also downloaded these:
Wei w5531 Intra-National versus International Trade: How Stubborn are Nations in Global Integration?
Razin and Sadka w4230 International Migration and International Trade
Helliwell w5215 Do National Borders Matter for Quebec's Trade?
Iranzo and Peri w13631 Migration and Trade in a World of Technological Differences: Theory with an Application to Eastern-Western European Integration
Wolf w5939 Patterns of Intra- and Inter-State Trade
 
Publications
Activities
Meetings
NBER Videos
Data
People
About

Support
National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us