The U.S.-Canada Border Effect : Smaller Than Previously Thought and Becoming Smaller

Details

• Alternative Title:
  The U.S.-Canada Border Effect was Smaller than Previously Thought, and Has Becoming Even Smaller
• Creators:
  Matsuo, Miwa ; Ishise, Hirokazu
• Corporate Creators:
  University of Iowa. School of Urban and Regional Planning
• Corporate Contributors:
  United States. Dept. of Transportation. Research and Innovative Technology Administration ; University Transportation Centers Program (U.S.)
• Subject/TRT Terms:
  • International borders
  • Border regions
  • Laws
  • Federal laws
  • Gravity equation
  • Border effect
  • Research Hub
• Publication/ Report Number:
  25-1121-0001-473 ; MATC-UI: 473
• Resource Type:
  Tech Report
• Geographical Coverage:
  United States ; Canada
• Edition:
  Final report.
• Corporate Publisher:
  Mid-America Transportation Center
• Abstract:
  We revisit the effect of the U.S.-Canada national border on trade, considering to what extent the border reduces trade when observable economic factors are controlled. A reexamination of the data yields estimates of the border effect that are 50% higher than previously expected (Feenstra, 2004); however, the nonlinearity of the estimation and distance measure reduce the effect by 65%. We therefore conclude that the border effect in 1993 had a factor of 4.10. This figure is 15% lower than the effect proposed by previous research. We also calculate the border effect for subsequent years and find that this effect steadily decreased to a low of 3.21 in 2007. Interestingly, a traditional linear methodology cannot be used to identify this decline clearly.
• Format:
  PDF
• Download URL:
  https://rosap.ntl.bts.gov/view/dot/25039/dot_25039_DS1.pdf
• File Type:
  [PDF - 1.74 MB]
• Collection(s):
  University Transportation Centers ; US Transportation Collection
• Main Document Checksum:
  urn:sha256:6fa374c76309c8c3b84dfbd2e7456be4afd921aaf772223c19bc697ad17bc599