Borders and Growth

Stanford GSB Working Paper No. 1761

47 Pages Posted: 22 Oct 2002

See all articles by Enrico Spolaore

Enrico Spolaore

Tufts University - Department of Economics

Romain T. Wacziarg

UCLA Anderson School of Management; National Bureau of Economic Research (NBER)

Multiple version iconThere are 3 versions of this paper

Date Written: September 2002

Abstract

This paper presents a framework to understand and measure the effects of political borders on economic growth and per capita income levels. We present a model providing a theoretical foundation to estimate empirically the effects of political borders on growth. In our model, political integration between two countries results in a positive country size effect and a negative effect through reduced openness vis-a-vis the rest of the world. We estimate the growth effects that would have resulted from the hypothetical removal of national borders between pairs of adjacent countries. We also identify country pairs where political integration would have been mutually beneficial.

Keywords: Economic Integration, International Trade, Political Unions, Borders

JEL Classification: F1, O5

Suggested Citation

Spolaore, Enrico and Wacziarg, Romain T., Borders and Growth (September 2002). Stanford GSB Working Paper No. 1761. Available at SSRN: https://ssrn.com/abstract=330260 or http://dx.doi.org/10.2139/ssrn.330260

Enrico Spolaore

Tufts University - Department of Economics ( email )

Medford, MA 02155
United States

Romain T. Wacziarg (Contact Author)

UCLA Anderson School of Management ( email )

110 Westwood Plaza
Los Angeles, CA 90095-1481
United States

National Bureau of Economic Research (NBER) ( email )

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

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