This paper analyses the effect of international borders and of trade agreements at international borders on subnational … 1950 and 2017. Our results show that international borders decrease regional income per capita, while trade agreements at … international borders increase regional income per capita by about the same magnitude. The positive marginal effect of trade …

,318 regions. The model suggests that an increase of trade barriers to the level of 1957 reduces welfare by about 1-2 percent on … average, depending on the presumed trade elasticity. However, remote regions may face initial welfare losses of up to 4 … of trade barriers in Europe has led to a more homogeneous spatial distribution of economic activity. With regard to the …

interregional trade was strongly influenced by connectivity within the network. Today, these connectivity differentials continue to …

general equilibrium model with multiple asymmetric regions, costly trade and labor mobility to carve out the aggregate … implications of this policy. Calibrating the model for Germany, we find that it indeed delivers smaller spatial economic …

regions in a new trade model, where capital can freely move among regions, but capital rewards are repatriated. We study …

is shown that regional competition leads to convergence if the trade costs are high but induces divergence if trade cost … have fallen below a certain value. Moreover, fiscal competition yields an overprovision if the trade costs are sizable … while it leads to underprovision if the regions are highly integrated. Finally, a trade-off between regional convergence and …

Trade data are typically reported at the level of regions or countries and are therefore aggregates across space. In … on border effects in domestic and international trade. Our theory shows that larger countries are systematically … effects. We test our theory on domestic and international trade flows at the level of U.S. states. Our results confirm the …