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Distance and border effects in international trade: A comparison of estimation methods

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  • Magerman, Glenn
  • Studnicka, Zuzanna
  • Van Hove, Jan

Abstract

This paper compares various estimation techniques used to determine the impact of distance and borders on international trade. The results consistently confirm the significantly negative distance effect, while the border effect, measured by evaluating whether intra-continental trade exceeds inter-continental trade, appears to be ambiguous and dependent on the estimation method. In addition, also the size of both effects varies substantially across estimation methods. Finally, the authors generally find that the estimations are in line with the respective weighting schemes of each estimation method.

Suggested Citation

  • Magerman, Glenn & Studnicka, Zuzanna & Van Hove, Jan, 2015. "Distance and border effects in international trade: A comparison of estimation methods," Economics Discussion Papers 2015-69, Kiel Institute for the World Economy (IfW).
  • Handle: RePEc:zbw:ifwedp:201569
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    References listed on IDEAS

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    2. Rasoulinezhad, Ehsan, 2020. "Energy Trade and Economic Integration between the Commonwealth Independent States and China," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 35(1), pages 172-190.
    3. Willert, Bianca, 2017. "How intermediates trade affects the formation of free trade agreements: A study analyzing pairwise trade flows of 70 countries," Thuenen-Series of Applied Economic Theory 147, University of Rostock, Institute of Economics.
    4. Bulawayo, Maio & Mudenda, Dale & Ndulo, Manenga & Simwanza, Charles, 2020. "Does Immigration Stimulate Non-Traditional Exports? Evidence from Zambia," African Journal of Economic Review, African Journal of Economic Review, vol. 8(3), November.
    5. Jones, Jonathan & Serwicka, Ilona & Wren, Colin, 2018. "Economic integration, border costs and FDI location: Evidence from the fifth European Union enlargement," International Review of Economics & Finance, Elsevier, vol. 54(C), pages 193-205.
    6. Mancal, A. & Barros, G., 2018. "Determinants of West African international agricultural trade," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277203, International Association of Agricultural Economists.

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    More about this item

    Keywords

    distance effect; border effect;

    JEL classification:

    • F10 - International Economics - - Trade - - - General
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade

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