Intra-national versus international trade in the European Union: why do national borders matter?

Chen, Natalie

doi:10.1016/s0022-1996(03)00042-4

Cited by 293 publications

(323 citation statements)

References 17 publications

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“…Another recent paper (Chen, 2000) shows that despite the single market and overall integration process of the European Union (EU), trade within an EU country can range between 2.1 times to 3.6 times than with another EU country.…”

Section: Literature Overviewmentioning

confidence: 99%

The home country in the age of globalization: how much does it matter for firm performance?

Hawawini

Subramanian

Verdin

2004

Journal of World Business

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The globalization process has created considerable speculation on the impact of the home country environment to a firm's competitive advantage in international markets. Using a random effects model that is partly induced from the concept of comparative advantage and partly following the descriptive modeling of performance determinants, this paper explores the quantitative impact of home country environment on the performance for firms across 6 countries. The paper uses two value based, i.e. risk adjusted and cash-flow based, measures of firm performance. The results indicate that the importance of country factors is low and firm-specific factors dominate performance across and within countries. The results also show that global industry effects are increasingly more important than country effects.

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Section: Literature Overviewmentioning

confidence: 99%

The home country in the age of globalization: how much does it matter for firm performance?

Hawawini

Subramanian

Verdin

2004

Journal of World Business

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“…Moreover, because the gravity equation is a log-linear reduced form of a utility maximisation problem (where the utility function is a CES), the issue raised by Silva and Tenreyro (2006) is relevant. This section discusses alternative estimators of a log-linear gravity equation, beginning with a consideration of the Tobit as applied by Chen (2004) and then comparing it to OLS and to the estimator proposed by Silva and Tenreyro (2006 …”

Section: Iiia Econometric Considerationsmentioning

confidence: 99%

“…As discussed above, Chen (2004) uses the values of the Ellison-Glaeser (EG) Index computed using US data and reported in Ellison and Glaeser (1997) to test the relationship between concentration and the BE. 11 In contrast with Chen, we believe that computing the concentration index with data for the European industries is preferable.…”

Section: Geographic Concentration Of Production In Europementioning

confidence: 99%

“…At an early stage, research focused on how to correctly estimate the BE (Anderson and van Wincoop 2003); later studies concentrated more on its explanation. Among the papers that attempt to explain the BE, we believe that Chen (2004) provides the most comprehensive analysis.…”

Section: Introductionmentioning

confidence: 99%

“…1 The elasticity of substitution component of the BE is usually overlooked because it concerns individuals' preferences, whereas interest focuses on impediments to trade. As for the border costs component, Chen (2004) points out that some specific border related factors, such as exchange rate volatility and tariff and non tariff barriers, are not explicative of the BE. Next, she turns to trade cost variables and behavioural response to trade cost variables.…”

Section: Introductionmentioning

confidence: 99%

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Sectoral border effects and the geographic concentration of production

Cafiso

2011

Rev World Econ

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The object of this paper is to study the relationship between the border effect and the geographic concentration of production. We explain this relationship through the home market effect and test the robustness of this explanation by using an analysis that considers the European single market. A sectoral gravity equation is estimated with different econometric estimators; in particular, we discuss a recently suggested estimator for log-linear CES models. Overall, our findings suggest a steady relationship between the border effect and the concentration of production. Furthermore, the analysis of concentration through a synthetic index provides us with valuable insights into the structure of the European industry.

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Specialization across Varieties and North–South Competition

Fontagné¹,

Gaulier²,

Zignago³

Economic Policy

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In this paper, we measure market access between the United States, the EU, and Japan (the Triad), using the effect of national borders on trade patterns. We investigate overall and industry-level trends of bilateral trade openness and provide explanations for those using proxies for bilateral observed protection (tariffs and NTBs), home bias of consumers, product differentiation, and levels of FDI. The explanations related to actual protection, home bias and substitutability of goods put together explain a large part of the border effect between blocs of the Triad, although they do not explain the whole of the border effect puzzle. JEL classification: F12, F15Commerce dans la Triade : jusqu'a`quel point l'acce`s aux grands marche´s est il facile? Cet article mesure le niveau d'inte´gration commerciale entre les pays de l'UE, le Japon et les Etats-Unis (la Triade) en utilisant l'effet des frontie`res nationales sur le commerce international. Nous e´tudions le niveau et l'e´volution du degre´d'ouverture bilate´ral ainsi que les diffe´rentes explications possibles des effets frontie`re estime´s qui sont teste´es a`l'aide de variables capturant la protection (tarifs et BNTs), le biais domestique des consommateurs, le degre´de diffe´renciation des produits et les niveaux d'IDE bilate´raux. Les explications lie´es a`la protection, au biais domestique et a`la substituabilite´entre produits, conside´re´es ensemble, expliquent une bonne partie de l'effet frontie`re entre pays de la Triade, meˆme si elles n'expliquent pas la totalite´de l'e´nigme.

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Intra-national versus international trade in the European Union: why do national borders matter?

Cited by 293 publications

References 17 publications

The home country in the age of globalization: how much does it matter for firm performance?

The home country in the age of globalization: how much does it matter for firm performance?

Sectoral border effects and the geographic concentration of production

Specialization across Varieties and North–South Competition

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