Working Paper: NBER ID: w15250
Authors: David S. Jacks
Abstract: In this paper, we investigate time-dependent border and distance effects in the nineteenth century and document clear declines in the importance of these variables through time. What this suggests, in light of the work for the post-1950 era, is that researchers might have correctly identified the increasing effect of distance on bilateral trade over time. In other words, trade costs may have not declined nearly as dramatically in the late twentieth century as has been supposed, especially in light of the nineteenth century, a time of documented trade cost decline and commodity market integration.
Keywords: No keywords provided
JEL Codes: F40; N70
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Distance (R12) | Trade Costs (F19) |
| Borders (F55) | Trade Costs (F19) |
| Time Interacted Border Effects (F55) | Trade Costs (F19) |
| Distance (R12) | Relative Price Volatility (E30) |