The impact of new borders on trade
Heinemeyer, Hans Christian ;  ;  Universität <Berlin, Freie Universität> / Fachbereich Wirtschaftswissenschaft

Main titleThe impact of new borders on trade
SubtitleWorld War I and the economic disintegration of Central Europe
AuthorHeinemeyer, Hans Christian
InstitutionUniversität <Berlin, Freie Universität> / Fachbereich Wirtschaftswissenschaft
No. of Pages41 S.
Series ; 2006,14 : Volkswirtschaftliche Reihe
Classification (DDC)330 Economics
Also published in
AbstractThis paper investigates the impact of changes in national border demarcation on economic integration. It treats the national breakups in Central Europe due to WWI as a natural experiment, which allows for evaluating the particular effect of new national borders. A gravity model of trade is used to analyze goods-specific trade among Central European regions. The main results are, first, that the treatment effect of new borders is large. Second, decomposing the border effect provides evidence of a “border before border” for parts of Germany that became separated even before WWI. Third, the analysis indicates a high level of economic integration before WWI among Polish regions that became politically unified only after the war.
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FU DepartmentDepartment Business and Economics
Year of publication2006
Type of documentBook
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Created at2008-06-17 : 07:01:56
Last changed2015-07-14 : 10:35:46
Static URLhttp://edocs.fu-berlin.de/docs/receive/FUDOCS_document_000000000285