International Trade and Coordination

Tracing Border Effects

Bibliographic Data

ID6412499
AuthorsD Bruce Carter (0000-0002-5236-8080), David B Carter (0000-0002-2139-5705), H E Goemans (0000-0001-5240-7134)
Year2018
Volume70
Issue1
Pages1-52
Publication date2018-01-01
Peer ReviewedYes
Open AccessYes
TypeARTICLE
VenueWorld Politics (JOURNAL)
Journal identifiersISSN: 0043-8871 • E-ISSN: 1086-3338
PublisherProject MUSE (PUBLISHER • US)
DOI10.1017/s0043887117000284
OpenAlexW2779042051
LanguageEN
Citations received9
References cited66

This article examines how the institutional design of borders affects international trade. The authors explore variation in the effects of borders by comparing new international borders that follow precedent and thus have a prior institutional history with new international borders that lack such an institutional history. The former minimally disrupt—or restore—previous economic networks, while the latter fundamentally disrupt existing economic networks. A variety of empirical tests show that, consistent with this institutional perspective on borders, new international boundaries that follow precedent are associated with significantly faster recovery and greater increase in subsequent trade flows. By contrast, when new international borders are truly new, they disrupt local economic networks, introduce new transaction costs, and impose higher adjustment costs on states, which the authors show to have long-term deleterious effects on trade

Economic integration · Economics · International economics · International trade · Microeconomics · Perspective (graphical · Transaction cost · Variety (cybernetics · Computer Science · Economic Policies and Impacts · Global trade and economics · International Development and Aid

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