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

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  • Yener Kandogan

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.

Suggested Citation

  • Yener Kandogan, 2008. "Falling walls and lifting curtains: analysis of border effects in transition countries," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 17(1), pages 85-104.
  • Handle: RePEc:taf:jitecd:v:17:y:2008:i:1:p:85-104 DOI: 10.1080/09638190701728008
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    References listed on IDEAS

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    1. Boldrin, Michele & Levine, David K., 2002. "Factor Saving Innovation," Journal of Economic Theory, Elsevier, vol. 105(1), pages 18-41, July.
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    3. Gary D. Hansen & Edward C. Prescott, 2002. "Malthus to Solow," American Economic Review, American Economic Association, pages 1205-1217.
    4. Douglas Gollin, 2002. "Getting Income Shares Right," Journal of Political Economy, University of Chicago Press, vol. 110(2), pages 458-474, April.
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    6. Orley Ashenfelter & David Ashmore & Olivier Deschenes, 1999. "Do Unemployment Insurance Recipients Actively Seek Work? Randomized Trials in Four U.S. States," NBER Working Papers 6982, National Bureau of Economic Research, Inc.
    7. Gary D. Hansen & Edward C. Prescott, 1999. "Malthus to Solow," Staff Report 257, Federal Reserve Bank of Minneapolis.
    8. Gary D. Hansen & Edward C. Prescott, 2002. "Malthus to Solow," American Economic Review, American Economic Association, pages 1205-1217.
    9. Alan B. Krueger, 1999. "Measuring Labor's Share," American Economic Review, American Economic Association, pages 45-51.
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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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