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Accession Number
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PB2013-102952
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Title
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U.S.-Canada Border Effect was Smaller than Previously Thought, and Has Becoming Even Smaller.
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Publication Date
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Jun 2012
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Media Count
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47p
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Personal Author
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H. Ishise M. Matsuo
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Abstract
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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.
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Keywords
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Border control Canada Distance Economic factors Estimation International trade Methodoloagy Transportation systems United Sstates
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Source Agency
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Federal Highway Administration
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NTIS Subject Category
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96C - International Commerce, Marketing, & Economics 85 - Transportation
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Corporate Author
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Iowa Univ., Iowa City. Dept. of Urban and Regional Planning.
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Document Type
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Technical report
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Title Note
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N/A
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NTIS Issue Number
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1307
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Contract Number
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MATC-25-1121-0001-473
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