Canadian Provinces in World Trade: Engagement and Detachment

Do Borders Really Slash Trade? A Meta-Analysis

“…Often it equals one for cross-border trade flows, in which case we simply take the negative of the estimated coefficient. Sometimes, however, the dummy variable equals one only for trade flows crossing the border in one direction (for example, Anderson & Smith, 1999). Following the common practice to "better err on the side of inclusion" in meta-analysis (Stanley, 2001, p. 135), we choose to include the estimates of directional border effects, but control for this aspect of methodology to see whether it yields systematically different estimates.…”

“…The final data set is available in the online appendix at meta-analysis.cz/border. de Almeida and da da Wolf (2009) Wei (1996) Wall (2000) Vancauteren and Weiserbs (2011) Vancauteren (2002) Tan (2012) Taglioni (2004) Straathof (2008) Requena and Llano (2010) Pachioli (2011) Olper and Raimondi (2008c) Olper and Raimondi (2008b) Olper and Raimondi (2008a) Okubo (2007) Okubo (2004) Nitsch (2001) Nitsch (2000) Minondo ( Helliwell (1997) Helliwell (1996) Helble (2007) Heinemeyer ( Feenstra (2002) Evans (2006) Evans (2003) Coughlin and Novy (2013) Chen (2004) Ceglowski (2000) Cafiso (2011b) Cafiso ( Anderson and Smith (1999b) Anderson and Smith (1999a) Notes: The figure shows a box plot of the estimates of the home coefficient (the coefficient estimated in a gravity equation on the dummy variable that equals one for within-country trade flows) reported in individual studies. Full references for the studies included in the meta-analysis are available in Appendix B.…”

Revisiting national border effects in foreign trade in goods of Canadian provinces

“…The studies generally report results that are smaller than but comparable to McCallum's border effects in North America. Noteworthy, Anderson and Smith (1999) first reported that border effects were not uniform across the Canadian provinces. The bias toward interprovincial trade ranged between 10 in British Columbia to 49 in Prince Edward Island.…”

“…In this context, the study also contributes to the discussion on the relatively subdued performance of Canada's international trade over the period reviewed. 6 In this paper, the unit of measure is a Canadian province. We first assess the magnitude of the border effects in foreign trade for Canadian provinces with U.S.…”

“…The list of EU and G-20 member countries included is provided in Table A.1 in the appendix. 6 "Over the past decade, the value of exports has increased at only a modest pace. This is despite significant price premiums received by Canadian producers of energy, mineral and agricultural commodities.…”