This paper uses a gravity framework to investigate the effects of distance as well as subnational and national borders in knowledge spillovers. Drawing on the NBER Patent Citations Database, we examine patent citations data at metropolitan level within the U.S. and the 38 largest patent-cited...

Why do borders still matter for economic activity? The reunification of Germany in 1990 provides a unique natural experiment for examining the effect of political borders on trade both in the cross-section and over time. With the fall of the Berlin Wall and the rapid formation of a political and...

Many studies have found that international borders represent large barriers to trade. But how do international borders compare to domestic border barriers? We investigate international and domestic border barriers in a unified framework. We consider a unique data set of exports from individual...

A large literature on border effects in the wake of McCallum (1995) documents the massive impact of borders on trade. However, all these studies suffer from an identification problem. Border effects are usually identified from cross-sectional variation alone. We do not know how trade would...

We estimate a linear approximation of the market potential function derived in geography and trade models. Using a spatial econometric estimation approach, border effects can be identified by a differential impact of neighboring regions' purchasing power, depending on whether two regions are...

A two-country model of oligopoly in general equilibrium is used to show how changes in market structure accompany the process of trade and capital market liberalisation. The model predicts that bilateral mergers in which low-cost firms buy out higher-cost foreign rivals are profitable under...

Using the border effect approach, our paper examines the influence of the legal framework quality of the Central and Eastern European countries on international trade. This approach offers an evaluation of the borders' impact on trade. A market is fragmented when actual trade differs from the...

This paper examines data on trade flows between West German Bundesländer (federal states) and East Germany to explore the effect of national borders on trade. Although the data cover only a small fraction of intra-German trade flows, I find a home bias of about factor 2.2; West German shipments...

A two-country model of oligopoly in general equilibrium is used to show how changes in market structure accompany the process of trade and capital market liberalisation. The model predicts that bilateral mergers in which low-cost firms buy out higher-cost foreign rivals are profitable under...

Das vorliegende Arbeitspapier beschäftigt sich mit dem Zusammenhang von Territorialgrenzen, Personenkontrollen und Staatlichkeit. Im Zentrum der Betrachtung stehen der Wandel des Nationalstaates alter Prägung sowie die Veränderung der staatlichen Grenz- und Personenkontrolle unter Bedingungen...