Do Borders Really Slash Trade? A Meta-Analysis

@article{Havrnek2015DoBR,
  title={Do Borders Really Slash Trade? A Meta-Analysis},
  author={T. Havr{\'a}nek and Zuzana Irsova},
  journal={IMF Economic Review},
  year={2015},
  volume={65},
  pages={365-396}
}
National borders reduce trade, but most estimates of the border effect seem puzzlingly large. We show that major methodological innovations of the last decade combine to shrink the border effect to a one-third reduction in international trade flows worldwide. For the computation we collect 1,271 estimates of the border effect reported in 61 studies, codify 32 aspects of study design that may influence the estimates, and use Bayesian model averaging to take into account model uncertainty in meta… Expand

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