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Geography and Intra-National Home Bias: U. S. Domestic Trade in 1949 and 2007

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  • Crafts, Nicholas
  • Klein, Alexander

Abstract

This paper examines home bias in U. S. domestic trade in 1949 and 2007. We use a unique dataset of 1949 carload waybill statistics produced by the Interstate Commerce Commission and 2007 Commodity Flow Survey data. The results show that home bias was considerably smaller in 1949 than in 2007 and that home bias in 1949 was even negative for several commodities. We argue that the difference between the geographical distribution of manufacturing activities in 1949 and that of 2007 is an important factor explaining the differences in the magnitudes of home-bias estimates in those years.

Suggested Citation

  • Crafts, Nicholas & Klein, Alexander, 2013. "Geography and Intra-National Home Bias: U. S. Domestic Trade in 1949 and 2007," CEPR Discussion Papers 9309, C.E.P.R. Discussion Papers.
  • Handle: RePEc:cpr:ceprdp:9309
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    References listed on IDEAS

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    Cited by:

    1. Crafts, Nicholas & Alexander Klein, Alexander, 2017. "A Long-Run Perspective on the Spatial Concentration of Manufacturing Industries in the United States," CAGE Online Working Paper Series 339, Competitive Advantage in the Global Economy (CAGE).

    More about this item

    Keywords

    gravity equation; intra-national home bias; manufacturing belt; spatial clustering;

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • N72 - Economic History - - Economic History: Transport, International and Domestic Trade, Energy, and Other Services - - - U.S.; Canada: 1913-

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