Trade agreements and subnational income of border regions

Title: Trade agreements and subnational income of border regions
Publication type: Article
Author(s): Adam, Hanna L.; Larch, Mario; Stadelmann, David
Year: 2023
Abstract: 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.
Language: English
Journal: Economic Inquiry
volume: 61
issue: 4
Page start: 1,034
Page end: 1,052
Keywords: GDP per capita; regions with international borders; subnational analysis; trade agreements
Source ID (eref-/epub-): eref-87348
Repository URL: https://eref.uni-bayreuth.de/id/eprint/87348/
DOI: 10.1111/ecin.13151
ISSN: 1465-7295

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