Total U.S. trade with NAFTA partners has increased 78 percent in real terms since 1993-U.S. Mexico trade alone is up 141 percent-compared to a 43 percent increase in U.S. trade with the rest of the world. In this article we compare the nature of U.S. trade growth with Canada and Mexico to growth...

Theory-consistent gravity equations are the focus of recent efforts to understand large international border effects. This study extends the current literature by examining asymmetric border frictions in the context of non-linear multi-lateral resistance regressors. Asymmetries are important...

Borders affect the composition, not only the level, of interregional trade. In disaggregated U.S. Commodity Flow data, border effects vary substantially across commodities. Substantial border-induced compositional change suggests the possibility that standard estimates suffer from aggregation...

A key element missing from the structural gravity literature is a legitimate validation of theory. By design the reduced-form gravity equation is adept at predicting bilateral trade flows. To make inferences beyond trade flows, however, theoretic models should be consistent with other observable...