Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/180318
Authors: 
Wrona, Jens
Year of Publication: 
2018
Series/Report no.: 
CESifo Working Paper No. 7056
Abstract: 
This paper identifies a “border” effect in the absence of a border. The finding that trade between East- and West-Japan is 23.1 to 51.3 percent lower than trade within both country parts, is established despite the absence of an obvious east-west division due to historical borders, cultural differences or past civil wars. Post-war agglomeration processes, reflected by the contemporaneous structure of Japan’s business and social networks, rather than cultural differences, induced by long-lasting historical shocks, are identified as an explanation for the east-west bias in intra-Japanese trade.
Subjects: 
border effects
gravity equation
intra-national Trade
Japan
JEL: 
F14
F15
F12
Document Type: 
Working Paper

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