Border Effects and Border Regions: Lessons from the German Unification

25 Pages Posted: 3 Feb 2003

See all articles by Volker Nitsch

Volker Nitsch

Darmstadt University of Technology - Department of Law and Economics; CESifo (Center for Economic Studies and Ifo Institute for Economic Research)

Date Written: 2002

Abstract

This paper examines data on trade flows between West German Bundeslander (federal states) and East Germany to explore the effect of national borders on trade. Although the data covers 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.

Keywords: home bias, intranational trade, gravity regression, unification

JEL Classification: F14, F15

Suggested Citation

Nitsch, Volker, Border Effects and Border Regions: Lessons from the German Unification (2002). Available at SSRN: https://ssrn.com/abstract=348642 or http://dx.doi.org/10.2139/ssrn.348642

Volker Nitsch (Contact Author)

Darmstadt University of Technology - Department of Law and Economics ( email )

Marktplatz 15
Residenzschloss
Darmstadt, 64283
Germany

CESifo (Center for Economic Studies and Ifo Institute for Economic Research)

Poschinger Str. 5
Munich, DE-81679
Germany

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
219
Abstract Views
1,503
rank
152,359
PlumX Metrics