We build a unique industry-level panel data set to estimate border effects with respect to U.S.-Canada trade for each year from 1992 to 2005. Estimates from data aggregated at the province/state level yield border effects in the early 1990s that increase slightly and then decline after the...

The paper builds a unique industry‐level panel data set to estimate the border effects associated with US–Canada trade for each year from 1992 to 2005. We first establish the theoretical foundation of our empirical model as a multisector version of Anderson and van Wincoop. Estimates from...