Trade in the Triad: How Easy Is the Access to Large Markets?

Fontagné, Lionel Gérard; Mayer, Thierry; Zignago, Soledad

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Trade in the Triad: How Easy Is the Access to Large Markets?

Canadian Journal of Economics 38(4), 2005

30 Pages Posted: 12 Jan 2014

See all articles by Lionel Gérard Fontagné

Lionel Gérard Fontagné

Banque de France; CEPII; University of Paris 1 Panthéon Sorbonne; Paris School of Economics

Université Paris I Panthéon-Sorbonne - TEAM; Ecole Nationale des Ponts et Chaussées (ENPC) - Centre d'Enseignement et de Recherche en Analyse Socio-Economique (CERAS); CEPII, Centre d'Etudes Prospectives et d'Info. Internationales, Paris; Centre for Economic Policy Research (CEPR)

Soledad Zignago

Banque de France

There are 2 versions of this paper

Date Written: November 1, 2005

Abstract

In this paper, we measure market access between the United States, the EU, and Japan (the Triad), using the effect of national borders on trade patterns. We investigate overall and industry-level trends of bilateral trade openness and provide explanations for those using proxies for bilateral observed protection (tariffs and NTBs), home bias of consumers, product differentiation, and levels of FDI. The explanations related to actual protection, home bias and substitutability of goods put together explain a large part of the border effect between blocs of the Triad, although they do not explain the whole of the border effect puzzle.

Keywords: international trade, border effects

JEL Classification: F12, F15

Suggested Citation: Suggested Citation

Fontagné, Lionel and Mayer, Thierry and Zignago, Soledad, Trade in the Triad: How Easy Is the Access to Large Markets? (November 1, 2005). Canadian Journal of Economics 38(4), 2005, Available at SSRN: https://ssrn.com/abstract=2377619