“…This study framework is similar to the extensively studied case of the US and Canada (e.g. McCallum, 1995;Engel and Rogers, 1996;Yi, 2010;Feenstra, 2002;Anderson and Wincoop;2003;Ishise and Matsuo, 2015) in the sense that both countries are contiguous and there is no outstanding geographical barrier between them that could be confused with the border influence.…”