Do Currency Barriers Solve the Border Effect Puzzle? Evidence from the CFA Franc Zone

Sousa, José de; Lochard, Julie

doi:10.1007/s10290-005-0037-5

Cited by 16 publications

(13 citation statements)

References 15 publications

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“…Hence, we conclude that the findings of Crucini, Telmer, and Zachariadis (2005) continue to hold even for highly transparent online auctions. Our results are also in line with various other empirical studies (e.g., de Sousa and Lochard, 2005;Engel and Rogers, 1996;Parsley and Wei, 2001a). But our findings raise questions about the causes of border effects: traditional explanations emphasize difficulties to compare prices due to currency conversion.…”

Section: Discussionsupporting

confidence: 93%

An Analysis of International Price Differentials on Ebay

Maier

2010

Contemporary Economic Policy

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"Online auction sites like eBay provide ways to measure what consumers buy and how much they pay. Does this imply that consumers pay similar prices, irrespective of their location? Comparing prices for homogeneous, tradable goods in the euro area and the United Kingdom, we find that prices differ significantly. The differential is not related to countries' having different currencies. However, price dispersion-the variance of prices-does seem to be smaller if two countries share a common currency. Our results confirm the importance of national borders in explaining price differences and their magnitude is related to (not) sharing a common currency." ("JEL" E30, E31, E50, F40) Copyright (c) 2009 Western Economic Association International.

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Section: Discussionsupporting

confidence: 93%

An Analysis of International Price Differentials on Ebay

Maier

2010

Contemporary Economic Policy

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“…10 It is interesting to observe that when these dummy variables are included the border effect decreases slightly to 2.085. A recent study of De Sousa and Lochard (2005) comes to a similar conclusion that the border effect for countries within a currency union is indeed lower. In (7F) the adjacency dummy is added and, as commonly observed in gravity equations, it has a positive sign.…”

Section: Equation (2f) Indicates That Trade Between French Regions Ismentioning

confidence: 55%

Border Effect Estimates for France and Germany Combining International Trade and Intranational Transport Flows

Helble

2007

Rev World Econ

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“…These results are not significantly different from each other and are consistent with the literature. Small and/or developing economies tend to have higher domestic trade intensities than large and/or developed economies (see Anderson and van Wincoop, 2003; De Sousa and Lochard, 2005; Helliwell, 1998).…”

Section: Resultsmentioning

confidence: 99%

Does political disintegration lead to trade disintegration? Evidence from transition countries¹

Sousa¹,

Lamotte²

2007

Economics of Transition

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Recent studies have found that political disintegration is a cause of severe and rapid trade disintegration in former Eastern European countries. This finding somewhat conflicts with another strand of the literature highlighting the fact that trade patterns change relatively slowly. This article aims at reconciling the apparent inconsistency between these two results. Using a theoretically grounded gravity equation, we evaluate the intensity of trade between successor states of three former countries (Czechoslovakia, the Soviet Union and Yugoslavia) in the period 1993 -2001. We find no clear evidence that political disintegration leads to systematic and severe trade disintegration. This result is consistent with the patterns displayed by using simple descriptive statistics, is robust to sensitivity checks, and supports the idea of hysteresis in trade.JEL classifications: F13, F15.

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Do Currency Barriers Solve the Border Effect Puzzle? Evidence from the CFA Franc Zone

Abstract: Borders, gravity, currency unions,

Cited by 16 publications

References 15 publications

An Analysis of International Price Differentials on Ebay

An Analysis of International Price Differentials on Ebay

Border Effect Estimates for France and Germany Combining International Trade and Intranational Transport Flows

Does political disintegration lead to trade disintegration? Evidence from transition countries¹

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Do Currency Barriers Solve the Border Effect Puzzle? Evidence from the CFA Franc Zone

Abstract: Borders, gravity, currency unions,

Cited by 16 publications

References 15 publications

An Analysis of International Price Differentials on Ebay

An Analysis of International Price Differentials on Ebay

Border Effect Estimates for France and Germany Combining International Trade and Intranational Transport Flows

Does political disintegration lead to trade disintegration? Evidence from transition countries1

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Does political disintegration lead to trade disintegration? Evidence from transition countries¹