How Wide is the Border?

Engel, Charles; Rogers, John H.

doi:10.17016/ifdp.1995.498

Cited by 552 publications

(642 citation statements)

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“…Evidence of such differences on either side of the Canada-U.S. border has been convincingly demonstrated by a series of papers. Engel and Rogers's (1996) study of price dispersion between cities in Canada and the United States reports that crossing the border is equivalent to a distance of 1,780 miles. While this estimate of the border's width has been challenged by Gorodnichenko and Tesar (2009), empirical studies consistently find price differences.…”

Section: Introductionmentioning

confidence: 99%

The Economics of Cross-Border Travel

Chandra

Head

Tappata

2014

Review of Economics and Statistics

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We model the decision to travel across an international border as a trade-off between benefits derived from buying a range of products at lower prices and the costs of travel. We estimate the model using microdata on Canada-United States travel. Price differences motivate cross-border travel; a 10% home appreciation raises the propensity to cross by 8% to 26%. The larger elasticity arises when the home currency is strong, a result predicted by the model. Distance to the border strongly inhibits crossings, with an implied cost of 87 cents per mile. Geographic differences can partially explain why American travel is less exchange rate responsive.

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Section: Introductionmentioning

confidence: 99%

The Economics of Cross-Border Travel

Chandra

Head

Tappata

2014

Review of Economics and Statistics

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“…An alternative form of remoteness variable has also been considered, attaching different weights to trading partners on the other side of the border. However, using the estimated border effects to weight the components of the remoteness variable -by converting the border effect into a distance equivalent, as illustrated by Engel and Rogers (1996) reduces the goodness of fit of the equation, so the simpler form is used in the results reported in this paper. The dependent variable is the logarithm of merchandise trade shipments from country x to country m. Data are in US dollars, from the IMF Direction of Trade, except when x = m, where shipments are OECD data for gross output of goods, converted to US dollars, minus the DoT figure for total merchandise exports.…”

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confidence: 99%

National Borders, Trade and Migration

Helliwell

1997

Pacific Economic Review

177

105

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INTRODUCTIONThis paper and its predecessor (Helliwell, 1996b) were triggered by the startling evidence, first presented by McCallum (1995), that 1988 merchandise trade flows among Canadian provinces were 20 times as dense as those between Canadian provinces and US states, after using a gravity model to control for the effects of size and distance. Such a striking finding demands verification and explanation. To see if similar results applied to other countries, Wei (1996) uses an imaginative method to generate approximate internal trade volumes and distances for OECD countries and finds for these countries a border effect that is statistically significant but far smaller than that found by McCallum. Head and Ries (1997) ask whether international migration may enable international trade opportunities to be better recognized and exploited. This paper is an attempt to build bridges between their research and the earlier findings. 1Abstract. The paper confirms a strikingly large effect of national borders on trade patterns. Estimates comparing trade among Canadian provinces with that between Canadian provinces and US states show interprovincial trade in 1988-90 to have been more than 20 times as dense as that between provinces and states, with some evidence of a downward trend since, owing to the post FTA growth in trade between Canada and the USA. Using approximate data for the volumes and distances of internal trade in OECD countries, the 1988 -92 border effect for unrelated OECD countries is estimated to exceed 12. Estimates from a census-based gravity model of interprovincial and international migration show a much higher border effect for migration than for trade, with interprovincial migration among the Anglophone provinces almost 100 times as dense as that from US states to Canadian provinces.

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“…2, 2007) is that the larger the ratio between the weighted and the unweighted sums of the squares of the elements of y, the stronger is the spatial correlation. It is also worth stressing that spatial filtering assumes a particular relevance within this context because of the findings of the PPP literature that regional differentials in the level of prices are less and less connected, the greater is the distance between the two locations they belong to Rogers 1996 and2001). So if the path followed by the level of the prices is less correlated the further is the distance between locations, then the less correlated will also be the inflation rates.…”

Section: Estimation Methodsmentioning

confidence: 99%

Merging the Purchasing Power Parity and the Phillips Curve Literatures

Vaona

2007

International Regional Science Review

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The main purpose of this article is to merge together two strands of the literature regarding, either directly or indirectly, inflation-specifically, the purchasing power parity and the Phillips curve ones. To accomplish this task, this contribution applies the tools of Dynamic Panel Data estimation on a sample of eighty one Italian provinces from the year 1986 to the year 1998, exploiting cross-sectional variation to avoid using instruments not directly connected with the inflation-generating process. This research strategy allows us to conclude that inflation is characterized by a low degree of persistence and by conditional b-convergence across provinces. Its most suitable driving variable is the unemployment rate, and there are longterm nonneutralities at the regional level.

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How Wide is the Border?

Cited by 552 publications

References 0 publications

The Economics of Cross-Border Travel

The Economics of Cross-Border Travel

National Borders, Trade and Migration

Merging the Purchasing Power Parity and the Phillips Curve Literatures

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