This paper analyzes the causes of the decline in Japanfs border effect by estimating gravity equations for Japanfs international and interregional trade in four machinery industries (electrical, general, precision, and transportation machinery). In the estimation, we explicitly take account of...

This paper examines network effects on trade by comparing the trade patterns of foreign affiliates in the United States with the trade patterns of U.S.-owned firms. The evidence strongly supports the following hypotheses: 1) foreign affiliates behave differently from U.S. firms in their trade...