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National borders matter... where one draws the lines too

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  • Lavallée, E.
  • Vicard, V.

Abstract

The 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%...

Suggested Citation

  • Lavallée, E. & Vicard, V., 2010. "National borders matter... where one draws the lines too," Working papers 272, Banque de France.
  • Handle: RePEc:bfr:banfra:272
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    References listed on IDEAS

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    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. Increasing trade by creating more borders
      by Economic Logician in Economic Logic on 2010-05-07 19:09:00

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    Cited by:

    1. Зиядин С. & Кабашева Н., 2018. "Основы Инициативы Евразийской Интеграции Сельского Хозяйства," Вопросы государственного и муниципального управления // Public administration issues, НИУ ВШЭ, issue 5, pages 56-67.
    2. Döhrn, Roland & Jäger, Philipp & Zwick, Lina, 2016. "Peak Trade? Auswirkungen einer weltwirtschaftlichen Wachstumsverlangsamung auf das Exportland Nordrhein-Westfalen," RWI Projektberichte, RWI - Leibniz-Institut für Wirtschaftsforschung, number 148929, September.
    3. Hinnerk Gnutzmann & Arevik Gnutzmann-Mkrtchyan, 2019. "The silent success of customs unions," Canadian Journal of Economics, Canadian Economics Association, vol. 52(1), pages 178-224, February.
    4. Giovanni Federico & Antonio Tena-Junguito, 2017. "A tale of two globalizations: gains from trade and openness 1800–2010," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 153(3), pages 601-626, August.
    5. Sayabek Ziyadin & Natalya Kabasheva, 2018. "The Basis for Initiating the Eurasian Integration of the Agricultural Sector," Public administration issues, Higher School of Economics, issue 5, pages 56-67.
    6. Lavallée, Emmanuelle & Lochard, Julie, 2015. "The comparative effects of independence on trade," Journal of Comparative Economics, Elsevier, vol. 43(3), pages 613-632.
    7. Hinnerk Gnutzmann & Arevik Gnutzmann‐Mkrtchyan, 2019. "The silent success of customs unions," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 52(1), pages 178-224, February.

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    More about this item

    Keywords

    Trade; Borders; Political disintegration; Trade statistics.;
    All these keywords.

    JEL classification:

    • F1 - International Economics - - Trade
    • N70 - Economic History - - Economic History: Transport, International and Domestic Trade, Energy, and Other Services - - - General, International, or Comparative

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