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Title:Border effects and border regions: Lessons from the German unification PDF Logo
Authors:Nitsch, Volker
Issue Date:2002
Series/Report no.:HWWA Discussion Paper 203
Abstract:This paper examines data on trade flows between West German Bundesländer (federal states) and East Germany to explore the effect of national borders on trade. Although the data cover only a small fraction of intra-German trade flows, I find a home bias of about factor 2.2; West German shipments to East Germany are about 120% larger than deliveries to an otherwise similar foreign country. Based on this result, possible implications for border regions are discussed
Subjects:home bias
intranational trade
gravity regression
unification
JEL:F15
F14
Document Type:Working Paper
Appears in Collections:HWWA Discussion Paper, Hamburgisches Welt-Wirtschafts-Archiv

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