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Intra‐national Trade Costs: Measurement and Aggregation

  • Agnosteva, Delina E.

    ()

    (School of Economics LeBow College of Business Drexel University)

  • Anderson, James E.

    ()

    (Department of Economics Boston College)

  • Yotov, Yoto

    ()

    (School of Economics LeBow College of Business Drexel University)

We develop and apply a procedure to flexibly estimate intra-national border barriers and intra-regional trade costs. Bilateral border barriers very significantly depress Canadian inter-provincial trade for some pairs, though the overall effect is rather small. Bilateral distance imposes much larger inter-provincial trade costs. Contiguity between provinces accounts for little. Intra-regional trade cost variation affects relative bilateral costs and trade flows, and alters comparative statics except in a neutral case rejected by the data. Consistent trade cost aggregation procedures are developed and applied for groups of regions and/or sectors.

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File URL: http://dl.dropboxusercontent.com/u/162210677/RePEc/drx/wpaper/LeBow%20College%20of%20Business%20Working%20Paper%202014-2.pdf
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Paper provided by LeBow College of Business, Drexel University in its series School of Economics Working Paper Series with number 2014-2.

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Length: 51 pages
Date of creation: 24 Jan 2014
Date of revision:
Handle: RePEc:ris:drxlwp:2014_002
Contact details of provider: Web page: http://www.lebow.drexel.edu/
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