Border effect

Border effects refer to asymmetries in trade patterns between cities and regions of different countries and those that are located in the same country. Usually, trade volume between the former is much less. Economic integration (as in the EU) may be a solution to overcome these effects. A 2017 meta-analysis of 1,271 estimates of the border effect finds that borders reduce trade by one third.

Border effect

Border effects refer to asymmetries in trade patterns between cities and regions of different countries and those that are located in the same country. Usually, trade volume between the former is much less. Economic integration (as in the EU) may be a solution to overcome these effects. A 2017 meta-analysis of 1,271 estimates of the border effect finds that borders reduce trade by one third.