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...

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 mere 28% reduction in international trade flows worldwide. The border effect varies across...

In a meta-analysis of spatial price transmission (PT) literature we aim to test for the presence of distance and border effects on price transmission. We use PT estimates for 1189 cereal market pairs extracted from 57 studies and seek to explain them by airline distance and existence of a...