Bailey, Michael; Abhinavagupta; Hillenbrand, Sebastian; … - 2020 - This draft: February 10, 2020
countries and 332 European regions. We find that two countries trade more with each other when they are more socially connected … and when they share social connections with a similar set of other countries. The social connections that determine trade … on trade declines substantially, and the effect of country borders disappears. Our findings suggest that social …