| ID | 159036 |
| Title Proper | Domestic and international border effects |
| Other Title Information | the cases of China and Japan |
| Language | ENG |
| Author | Hayakawa, Kazunobu |
| Summary / Abstract (Note) | Previous studies in the border-effect literature surprisingly found that domestic border effects are larger than international border effects (e.g., in the United States or Brazil). One interpretation of this result is that these estimates include the effects of producer agglomeration. Therefore, in this study, we estimate those border effects exclusively for transactions for final consumption, in which such agglomeration forces will be weak, in China and Japan. As a result, we found larger international border effects and could not find a significant role for producer agglomeration in the estimates of border effects. We also found that China's accession to the World Trade Organization reduces border effects in trading between China and Japan but does not decrease domestic border effects. |
| `In' analytical Note | China Economic Review Vol. 43; Apr 2017: p.118-126 |
| Journal Source | China Economic Review 2017-04 |
| Key Words | China ; Gravity ; Border Effects |