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The disappearance of the border barrier in some European Union countries' bilateral trade

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  • Asier Minondo

Abstract

This paper estimates the tariff equivalent of the border barrier in each bilateral trade among European Union (EU) countries. The results show that there are large differences in the border barrier across EU countries' bilateral trade. In some bilateral trade flows the border barrier has almost disappeared, whereas in other cases it is still equivalent to a 75% tariff. The results also show that some countries have low border barriers in most of their bilateral trade flows with other EU members, whereas other countries persistently present large border barriers.

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Bibliographic Info

Article provided by Taylor & Francis Journals in its journal Applied Economics.

Volume (Year): 39 (2007)
Issue (Month): 1 ()
Pages: 119-124

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Handle: RePEc:taf:applec:v:39:y:2007:i:1:p:119-124

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  1. James E. Anderson & Eric van Wincoop, 2004. "Trade Costs," Journal of Economic Literature, American Economic Association, vol. 42(3), pages 691-751, September.
  2. Volker Nitsch, 2000. "National borders and international trade: evidence from the European Union," Canadian Journal of Economics, Canadian Economics Association, vol. 33(4), pages 1091-1105, November.
  3. James E. Anderson & Eric van Wincoop, 2001. "Gravity with Gravitas: A Solution to the Border Puzzle," NBER Working Papers 8079, National Bureau of Economic Research, Inc.
  4. Keith Head & Thierry Mayer, 2004. "Non-Europe : the magnitude and causes of market fragmentation in the EU," Cahiers de la Maison des Sciences Economiques bla99004a, Université Panthéon-Sorbonne (Paris 1).
  5. Chen, Natalie, 2002. "Intra-national versus International Trade in the European Union: Why do National Borders Matter?," CEPR Discussion Papers 3407, C.E.P.R. Discussion Papers.
  6. McCallum, John, 1995. "National Borders Matter: Canada-U.S. Regional Trade Patterns," American Economic Review, American Economic Association, vol. 85(3), pages 615-23, June.
  7. Edward Balistreri & Russell Hillberry, 2006. "Trade frictions and welfare in the gravity model: how much of the iceberg melts?," Canadian Journal of Economics, Canadian Economics Association, vol. 39(1), pages 247-265, February.
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Cited by:
  1. Almudena Martinez-Campillo & Mª del Pilar Sierra-Fernández, 2012. "Impact of European Integration Process in Spain," European Research Studies Journal, European Research Studies Journal, vol. 0(2), pages 57-80.

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