“Border Effects without Borders: What Divides Japan’s Internal Trade?”

“Border Effects without Borders: What Divides Japan’s Internal Trade?”

Jens Wrona

In: International Economic Review, Volume 59 (August 2018), Issue 3, Pages 1209-1262

This article identifies a “border” effect in the absence of a border. The finding that trade between east and west Japan is 23.1% to 51.3% lower than trade within both country parts is established despite the absence of an obvious east–west division due to historical borders, cultural differences, or past civil wars.