By looking at imports of Eastern European countries we provide novel insights on the importance and magnitude of border effects and on how they are linked with technical barriers to trade. All CEECs traded with themselves more than with other countries. We grouped products into three categories;...

National borders reduce trade, but most estimates of the border effect seem puzzlingly large. We show that major methodological innovations of the last decade combine to shrink the border effect to a one-third reduction in international trade flows worldwide. The border effect varies across...