"Fixed transaction costs and delivery lags are important costs of international trade. These costs lead firms to import … to a sudden, large increase in the relative price of imported goods creates a short-term trade implosion, an immediate …

"We estimate geographic barriers to export trade in nine service categories for Canada's provinces from 1997 to 2007 … direct plus indirect effect of services trade costs on intra-provincial, inter-provincial and international trade relative to … their frictionless benchmarks. Barriers to services international trade are huge relative to inter-provincial trade and …