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Gravity with Gravitas : A Solution to the Border Puzzle
Anderson, James E. - 2001
and exchange rate mechanisms. McCallum [1995] found that the US-Canada border led to trade between provinces that is a … puzzle' by applying the theory seriously. We find that national borders reduce trade between the US and Canada by about 44 … of a combination of omitted variables bias and the small size of the Canadian economy. Within-Canada trade rises by a …
Persistent link: https://www.econbiz.de/10012470650
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Borders within Europe
Santamaría, Marta A. - 2020
Are country borders still an impediment to trade flows within Europe? Using a rich microlevel survey with 3 million annual shipments of goods by road across 269 European regions, we construct a matrix of bilateral trade flows for 12 industries from 2011 to 2017. We then use the causal inference...
Persistent link: https://www.econbiz.de/10012482519
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Estimating the Border Effect : Some New Evidence
Gopinath, Gita - 2009
stores in the U.S. and Canada. We develop a model of pricing by location and employ a regression discontinuity approach to … discontinuity between adjacent stores on either side of the U.S.-Canada border is as high as 21%. In contrast, within-country border … the U.S.-Canada nominal exchange rate. We show these facts suggest that the price gaps we estimate provide only a lower …
Persistent link: https://www.econbiz.de/10012463710
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Supply Chain Adjustments to Tariff Shocks : Evidence from Firm Trade Linkages in the 2018-2019 U.S. Trade War
Handley, Kyle; Kamal, Fariha; Monarch, Ryan - National Bureau of Economic Research - 2023
We use the 2018-2019 U.S. trade war to examine how supply chains adjustments to a tariff cost shock affect imports and exports. Using confidential firm-trade linked data, we show that the decline in imports of tariffed goods was driven by discontinuations of U.S. buyer-foreign supplier...
Persistent link: https://www.econbiz.de/10014337835
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The Empire Project : Trade Policy in Interwar Canada
Lampe, Markus; O'Rourke, Kevin Hjortshøj; Reiter, Lorenz; … - National Bureau of Economic Research - 2023
This paper uses a new dataset on the universe of Canadian imports and tariffs between 1924 and 1936, disaggregated into 1697 goods originating in 112 countries, to analyze the impact on Canadian imports of interwar Canadian trade policy, including the 1932 Ottawa trade agreements. Rather than...
Persistent link: https://www.econbiz.de/10014287339
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Borders, Ethnicity and Trade
Aker, Jenny C. - 2010
Do national borders and ethnicity contribute to market segmentation between and within countries? This paper uses unique and high-frequency data on narrowly-defined goods to gauge the extent to which a national border impedes trade between developing countries (Niger and Nigeria). Using a...
Persistent link: https://www.econbiz.de/10012462692
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Horses for Courses : Measuring Foreign Supply Chain Exposure
Baldwin, Richard E.; Freeman, Rebecca; … - National Bureau of Economic Research - 2022
Perceptions of global supply chains (GSCs) have shifted in recent years from a positive to a more cautious view. Standard GSC measures have mostly not adapted to this change as they focus on participation in, rather than exposure to, foreign supply chains. This paper presents the tools necessary...
Persistent link: https://www.econbiz.de/10013388881
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An Import(ant) Price of Brexit Uncertainty
Graziano, Alejandro G.; Handley, Kyle; Limão, Nuno - National Bureau of Economic Research - 2023
We estimate the impact of trade policy uncertainty (TPU) on CES import price indices, focusing on the implications of Britain's exit from the European Union (Brexit). Our analysis reveals that an increase in the probability of Brexit increases U.K. import price indices by raising the prices of...
Persistent link: https://www.econbiz.de/10014337833
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Lessons from U.S.-China Trade Relations
Caliendo, Lorenzo; Parro, Fernando - National Bureau of Economic Research - 2022
We review theoretical and empirical work on the economic effects of the United States and China trade relations during the last decades. We first discuss the origins of the China shock, its measurement, and present methods used to study its economic effects on different outcomes. We then focus...
Persistent link: https://www.econbiz.de/10013361989
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Virtual Borders : Online Nominal Rigidities and International Market Segmentation
Boivin, Jean - 2010
Do prices respond to macro shocks? Does the mere presence of international frontiers hinder trade? We revisit these questions by studying a dataset of online book prices for a number of US and Canadian retailers. We believe our dataset is well suited to this task for a number of reasons: (1)...
Persistent link: https://www.econbiz.de/10012463008