Abstract
International finance and trade economists have traditionally focused on the behaviour of cross-country prices and factor returns and the flow of goods and capital across nations. Studying these same variables across locations within countries provides a baseline for measuring the influence of the border. The ‘border effect’ is the difference between international and intra-national magnitudes. Large border effects were initially found in consumer goods prices and trade volumes. Subsequent studies have examined robustness and looked for explanations of the border effect.
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Rogers, J.H. (2018). Border Effects. In: The New Palgrave Dictionary of Economics. Palgrave Macmillan, London. https://doi.org/10.1057/978-1-349-95189-5_2340
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DOI: https://doi.org/10.1057/978-1-349-95189-5_2340
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