National borders matter...where one draws the lines too
AbstractThe fact that crossing a political border dramatically reduces trade ﬂows has been widely documented in the literature. The increasing number of borders has surprisingly attracted much less attention. The number of independent countries has indeed risen from 72 in 1948 to 192 today. This paper estimates the eﬀect of political disintegration since World War II on the measured growth in world trade. We ﬁrst show that trade statistics should be considered carefully when assessing globalization over time, since the deﬁnition of trade partners varies over time. We document a sizeable resulting accounting artefact, which accounts for 17% of the growth in world trade since 1948. Second, we estimate that political disintegration alone since World War II has raised measured international trade ﬂows by 9% but decreased actual trade ﬂows (including inter-regional trade) by 4%.
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Bibliographic InfoPaper provided by Paris Dauphine University in its series Economics Papers from University Paris Dauphine with number 123456789/3785.
Date of creation: 2013
Date of revision:
Publication status: Published in Canadian Journal of Economics, 2013, Vol. 46, no. 1. pp. 135-153.Length: 18 pages
Trade; Commerce; Frontières; Trade Statistics; Political Disintegration; Borders;
Other versions of this item:
- Emmanuelle Lavallée & Vincent Vicard, 2013. "National borders matterwhere one draws the lines too," Canadian Journal of Economics, Canadian Economics Association, vol. 46(1), pages 135-153, February.
- Lavallée, E. & Vicard, V., 2010. "National borders matter... where one draws the lines too," Working papers 272, Banque de France.
- N70 - Economic History - - Economic History: Transport, International and Domestic Trade, Energy, and Other Services - - - General, International, or Comparative
- F02 - International Economics - - General - - - International Economic Order; Noneconomic International Organizations;; Economic Integration and Globalization: General
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-11-16 (All new papers)
- NEP-GEO-2013-11-16 (Economic Geography)
- NEP-HIS-2013-11-16 (Business, Economic & Financial History)
- NEP-POL-2013-11-16 (Positive Political Economics)
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Blog mentionsAs found by EconAcademics.org, the blog aggregator for Economics research:
- Increasing trade by creating more borders
by Economic Logician in Economic Logic on 2010-05-07 14:09:00
- Lavallée, Emmanuelle & Lochard, Julie, 2012. "Independence and trade: new evidence from French colonial trade data," Economics Papers from University Paris Dauphine 123456789/10246, Paris Dauphine University.
- Lavallée, Emmanuelle & Lochard, Julie, 2012. "Independence and trade: the specic effects of French colonialism," Economics Papers from University Paris Dauphine 123456789/9564, Paris Dauphine University.
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