Advanced Search
MyIDEAS: Login

Road Connectivity and the Border Effect: Evidence from Europe

Contents:

Author Info

  • Henrik Braconier
  • Mauro Pisu

Abstract

Several studies have reported a large negative effect of national borders on the volume of trade. We provide new estimates of the border effect for continental Europe using road rather than great circle – or “as-crows-fly” – distance. Road distances for 48 180 European city pairs have been extracted from Bing Maps Routing Services. As our dataset also has information on travel time, we are able to consider costs related to time in addition to those depending on distance. We find that for the same great circle distance and the same city size, the road distance between two cities located in the same country is around 10% shorter than that between cities located in different ones. Travel speed is also higher between cities in the same country. We find that by using measures based on the actual road distance rather than the great circle distance, the negative effect of international borders on goods trade in a standard gravity equation is lowered by around 15%. Time-related trade costs account for an additional 10% reduction in the border effect. Overall these results point to the importance of road networks – and road transport policy in general – to enhance market integration. La connectivité routière et l'effet frontière : données concernant l'Europe Plusieurs études font état d’un effet négatif très prononcé des frontières nationales sur le volume des échanges. Nous livrons de nouvelles estimations de l’effet frontière en Europe continentale en utilisant les distances routières au lieu des distances orthodromiques – c’est-à-dire « à vol d’oiseau ». Les distances routières de 48 180 paires de villes européennes sont issues du service de calcul d’itinéraires de Bing Cartes. Étant donné que notre ensemble de données comporte aussi des informations sur les temps de trajet, nous sommes en mesure de prendre en compte les coûts liés au temps, en plus de ceux qui dépendent de la distance. Nous constatons qu’à distance orthodromique et taille d’agglomération égales, la distance routière entre deux villes d’un même pays est inférieure de 10 % environ à celle qui sépare des villes situées dans des pays différents. De même, la distance est parcourue plus rapidement lorsque les villes se trouvent dans le même pays. Nous observons qu’en utilisant des mesures établies sur la distance routière effective, plutôt que sur la distance orthodromique, l’effet négatif des frontières internationales sur les échanges de marchandises dans une équation de gravité standard diminue d’environ 15 %. Les coûts des échanges liés à la durée des trajets sont à l’origine d’une réduction supplémentaire de 10 % de l’effet frontière. Dans l’ensemble, ces résultats font ressortir l’importance des réseaux routiers – et de la politique du transport routier en général – pour renforcer l’intégration des marchés.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://dx.doi.org/10.1787/5k43nxmh51mw-en
Our checks indicate that this address may not be valid because: 500 Internal Server Error (http://dx.doi.org/10.1787/5k43nxmh51mw-en [303 See Other]--> http://www.oecd-ilibrary.org/economics/road-connectivity-and-the-border-effect_5k43nxmh51mw-en). If this is indeed the case, please notify ()
Download Restriction: no

Bibliographic Info

Paper provided by OECD Publishing in its series OECD Economics Department Working Papers with number 1073.

as in new window
Length:
Date of creation: 01 Jul 2013
Date of revision:
Handle: RePEc:oec:ecoaaa:1073-en

Contact details of provider:
Postal: 2 rue Andre Pascal, 75775 Paris Cedex 16
Phone: 33-(0)-1-45 24 82 00
Fax: 33-(0)-1-45 24 85 00
Email:
Web page: http://www.oecd.org
More information through EDIRC

Related research

Keywords: international trade; distance; travel time; gravity; road transport; gravité; transport routier; temps de trajet; distance; échanges internationaux;

Other versions of this item:

Find related papers by JEL classification:

This paper has been announced in the following NEP Reports:

References

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
as in new window
  1. Spiros Bougheas & Panicos Demetriades & Edgar Morgenroth, 1996. "Infrastructure, Transport Costs and Trade," Keele Department of Economics Discussion Papers (1995-2001) 96/7, Department of Economics, Keele University.
  2. Simeon Djankov & Caroline Freund & Cong S. Pham, 2010. "Trading on Time," The Review of Economics and Statistics, MIT Press, vol. 92(1), pages 166-173, February.
  3. 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.
  4. David Hummels & Georg Schaur, 2012. "Time as a Trade Barrier," NBER Working Papers 17758, National Bureau of Economic Research, Inc.
  5. Russell H. Hillberry, 2002. "Aggregation bias, compositional change, and the border effect," Canadian Journal of Economics, Canadian Economics Association, vol. 35(3), pages 517-530, August.
  6. Alain de Serres & Peter Hoeller & Christine de la Maisonneuve, 2001. "The Width of the Intra-European Economic Borders," OECD Economics Department Working Papers 304, OECD Publishing.
  7. Carolyn L. Evans, 2003. "The Economic Significance of National Border Effects," American Economic Review, American Economic Association, vol. 93(4), pages 1291-1312, September.
  8. Carolyn L. Evans, 2001. "Border effects and the availability of domestic products abroad," Staff Reports 127, Federal Reserve Bank of New York.
  9. John F. Helliwell & Geneviève Verdier, 2001. "Measuring internal trade distances: a new method applied to estimate provincial border effects in Canada," Canadian Journal of Economics, Canadian Economics Association, vol. 34(4), pages 1024-1041, November.
  10. Carolyn L. Evans & James Harrigan, 2005. "Distance, Time, and Specialization: Lean Retailing in General Equilibrium," American Economic Review, American Economic Association, vol. 95(1), pages 292-313, March.
Full references (including those not matched with items on IDEAS)

Citations

Blog mentions

As found by EconAcademics.org, the blog aggregator for Economics research:
  1. Travel time and the border effect
    by Economic Logician in Economic Logic on 2013-09-09 14:00:00

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:oec:ecoaaa:1073-en. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ().

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.