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National borders and international trade: evidence from the European Union

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  • Volker Nitsch

Abstract

In this paper the impact of national borders on international trade within the European Union is considered. Using a gravity model, I find that, averaged over all EU countries, intranational trade is about ten times as high as international trade with an EU partner country of similar size and distance. This relatively strong home bias suggests that even within the European Union national borders still have a decisive impact on trade patterns. JEL Classification: F02, F14, F15, O52 Ce mémoire examine l'impact des frontières nationales sur le commerce international à l'intérieur de l'Union européenne. On montre que, en moyenne pour tous les pays de l'Union européenne, le commerce intranational est à peu près dix fois plus important que le commerce international avec un pays partenaire de l'Union européenne de même taille et à même distance. Ce degré relativement important de préférence nationale suggère que, même dans le cadre de l'Union européenne, les frontières nationales ont encore un impact déterminant sur les patterns de commerce.

Suggested Citation

  • Volker Nitsch, 2000. "National borders and international trade: evidence from the European Union," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 33(4), pages 1091-1105, November.
    • Handle: RePEc:wly:canjec:v:33:y:2000:i:4:p:1091-1105
    DOI: 10.1111/0008-4085.00055
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    JEL classification:

    • F02 - International Economics - - General - - - International Economic Order and Integration
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F15 - International Economics - - Trade - - - Economic Integration
    • O52 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Europe

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