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Accession Number PB2013-102952
Title U.S.-Canada Border Effect was Smaller than Previously Thought, and Has Becoming Even Smaller.
Publication Date Jun 2012
Media Count 47p
Personal Author H. Ishise M. Matsuo
Abstract We revisit the effect of the U.S.-Canada national border on trade, considering to what extent the border reduces trade when observable economic factors are controlled. A reexamination of the data yields estimates of the border effect that are 50% higher than previously expected (Feenstra, 2004); however, the nonlinearity of the estimation and distance measure reduce the effect by 65%. We therefore conclude that the border effect in 1993 had a factor of 4.10. This figure is 15% lower than the effect proposed by previous research. We also calculate the border effect for subsequent years and find that this effect steadily decreased to a low of 3.21 in 2007. Interestingly, a traditional linear methodology cannot be used to identify this decline clearly.
Keywords Border control
Canada
Distance
Economic factors
Estimation
International trade
Methodoloagy
Transportation systems
United Sstates

 
Source Agency Federal Highway Administration
NTIS Subject Category 96C - International Commerce, Marketing, & Economics
85 - Transportation
Corporate Author Iowa Univ., Iowa City. Dept. of Urban and Regional Planning.
Document Type Technical report
Title Note N/A
NTIS Issue Number 1307
Contract Number MATC-25-1121-0001-473

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