Anderson, James E.; van Wincoop, Eric - 2021
competitive world economy. Our method is novel. The effect of border barriers on trade flows is often inferred from gravity models … (NBER WP 8079, 2001) we develop and estimate this structure, then calculate the comparative static effects on trade flows of … borders, to currency unions and to NAFTA. Our NAFTA exercise does a much better job of replicating the actual trade flow …