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Intra‐national Trade Costs: Measurement and Aggregation

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  • 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)

Abstract

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.

Suggested Citation

  • Agnosteva, Delina E. & Anderson, James E. & Yotov, Yoto, 2014. "Intra‐national Trade Costs: Measurement and Aggregation," School of Economics Working Paper Series 2014-2, LeBow College of Business, Drexel University.
  • Handle: RePEc:ris:drxlwp:2014_002
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    More about this item

    Keywords

    Intra- and Inter-regional Trade Costs; Border Effects; Aggregation; Canada;
    All these keywords.

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions

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