Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/288065 
Year of Publication: 
2023
Citation: 
[Journal:] Economic Inquiry [ISSN:] 1465-7295 [Volume:] 61 [Issue:] 4 [Publisher:] Wiley [Place:] Hoboken, NJ [Year:] 2023 [Pages:] 1034-1052
Publisher: 
Wiley, Hoboken, NJ
Abstract: 
This paper analyses the differential effect of trade agreements on income per capita of subnational regions with international borders. We construct an extensive panel dataset covering 1350 regions in 86 countries worldwide between 1950 and 2017. Our results show that trade agreements are positively associated with income per capita of regions sharing contiguous borders with trading partners, relative to regions sharing borders with countries with whom no trade agreements exist. For border regions, the positive relationship of trade agreements and regional income roughly compensates potential income disadvantages of having international borders. These insights help in explaining and mitigating regional inequalities.
Subjects: 
GDP per capita
regions with international borders
subnational analysis
trade agreements
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Article
Document Version: 
Published Version

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