Is the Border Effect an Artefact of Geographical Aggregation

  title={Is the Border Effect an Artefact of Geographical Aggregation},
  author={Carlos Llano},
The existence of a large border effect is considered as one of the main puzzles of international macroeconomics. We show that the border puzzle is an artefact of geographic concentration. In order to do so we combine international shipments with intra-national shipments data characterised by a high geographic grid. At this fine grid, intra-national shipments are highly localised and dropping sharply with distance. The use of a small geographical unit of reference to measure intra-national… CONTINUE READING

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