Llano-Verduras, Carlos; Minondo, Asier; … - Departament d'Estructura Econòmica, Facultad de Economía - 2011
The existence of a large border effect is considered as one of the main puzzles of international macroeconomics. We show that the border effect is, to a large extent, an artefact of geographic concentration. In order to do so we combine international flows with intranational flows data...