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Falling walls and lifting curtains: analysis of border effects in transition countries

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  • Yener Kandogan
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    Abstract

    Since McCallum's (1995) finding of surprisingly high border effects on trade between the US and Canada, there have been a number of studies on other parts of the world, and improvements made to the gravity model to measure this effect accurately. This paper suggests some other modifications to the model, and applies it to a region of the world that presents a distinctly interesting case. Changes in border effects of formerly socialist countries in Central and East Europe, and countries in the former Soviet Union are analyzed during 1976-2002 at country and sectoral levels, and also with respect to blocs of countries. A discussion on cross-country variations in border effects follows the computations.

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    Bibliographic Info

    Article provided by Taylor & Francis Journals in its journal The Journal of International Trade & Economic Development.

    Volume (Year): 17 (2008)
    Issue (Month): 1 ()
    Pages: 85-104

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    Handle: RePEc:taf:jitecd:v:17:y:2008:i:1:p:85-104

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    Related research

    Keywords: gravity models; integration; disintegration; fixed effects; Eastern Europe; bilateral trade resistance;

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    Cited by:
    1. Helena Marques, 2008. "Asymmetries in Heterogeneous Integrated Areas: Evidence from Intra-EU Sectoral Trade," Working Papers 2008.2, International Network for Economic Research - INFER.

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