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Border effects in the variability of rice price in the Indian subcontinent: Results from a natural experiment

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  • Morshed, A.K.M. Mahbub

Abstract

The presence of a national border seems to increase the variability of consumer price for cross-border locations. Most of the empirical studies have been conducted in a with or without a border framework. Researchers compared price variation at locations in different countries with price variation at locations within a country. We adopted a complementary before and after a border framework. Prices at locations under different political regimes in different time periods were used to examine whether the creation of national borders is of any significance in consumer price variability. We found the price variability of rice for cross border city pairs increased significantly during the Pakistan period - when the Indian Subcontinent was composed of two independent countries - while it increased slightly during the Bangladesh period when the same geographic region was composed of three different countries.

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  • Morshed, A.K.M. Mahbub, 2011. "Border effects in the variability of rice price in the Indian subcontinent: Results from a natural experiment," Journal of Asian Economics, Elsevier, vol. 22(4), pages 295-301, August.
    • Handle: RePEc:eee:asieco:v:22:y:2011:i:4:p:295-301
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    Cited by:

    1. Jacint Balaguer & Jordi Ripollés, 2018. "Revisiting the importance of border effect in sub‐national regions. Evidence from a quasi‐experimental design," Papers in Regional Science, Wiley Blackwell, vol. 97(4), pages 1113-1130, November.
    2. Thomas Fullerton & Adam Walke, 2014. "Homicides, exchange rates, and northern border retail activity in Mexico," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 53(3), pages 631-647, November.
    3. Saileshsingh Gunessee & Cheng Zhang, 2022. "The economics of domestic market integration," Journal of Economic Surveys, Wiley Blackwell, vol. 36(4), pages 1069-1095, September.
    4. Thomas M. Fullerton & Adam G. Walke, 2019. "Cross-Border Shopping and Employment Patterns in the Southwestern United States," Journal of International Commerce, Economics and Policy (JICEP), World Scientific Publishing Co. Pte. Ltd., vol. 10(03), pages 1-19, October.

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