Border effects and border regions: Lessons from the German unification

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

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Year of publication:	2002
Authors:	Nitsch, Volker
Publisher:	Hamburg : Hamburg Institute of International Economics (HWWA)
Subject:	Interregionaler Handel \| Gravitationsmodell \| Grenze \| Grenzgebiet \| Außenwirtschaft \| Nationale Einheit \| Schätzung \| Alte Bundesländer \| Neue Bundesländer \| Deutschland \| home bias \| intranational trade \| gravity regression \| unification

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Series:	HWWA Discussion Paper ; 203
Type of publication:	Book / Working Paper
Type of publication (narrower categories):	Working Paper
Language:	English
Other identifiers:	356980634 [GVK] hdl:10419/19364 [Handle] RePEc:zbw:hwwadp:26291 [RePEc]
Classification:	F15 - Economic Integration ; F14 - Country and Industry Studies of Trade
Source:	EconStor

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