Cletus Coughlin, Dennis Novy, 08 May 2016

Borders impede trade, and a major objective of research in international trade has been to identify by how much. This column argues that bilateral trade data can give a misleading picture. Larger countries have inherently smaller border effects because their data aggregate over more space and economic activity. Trade economists need to think harder about how slicing up the map at the level of countries drives estimates of important policy variables.

James Anderson, Ingo Borchert, Aaditya Mattoo, Yoto Yotov, 21 October 2015

Policy barriers to services trade comprise relatively opaque and hard-to-measure regulations. This column provides novel estimates that reveal that services trade barriers are large but have generally fallen over time, with pronounced differences across sectors and countries. Trade barriers have declined less for small economies and for sectors where initial borders were high.

Nikolaus Wolf, Volker Nitsch, 09 November 2009

The fall of the Berlin Wall 20 years ago created a number of "natural experiments" that economists have exploited to advance our understanding of fundamental issues. This column reviews the use of German data to examine the surprisingly large impact that international borders have in geographically dampening buying and selling patterns. Its results show that the biggest barriers to trade stem from economic fundamentals rather than technological and political barriers. Infrastructure and tariffs can come done quickly; it takes at least a generation to tear down the wall in our minds.

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