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Nawaraj S. Paudel and Sajal Lahiri
''Do politically and economically similar states in the U.S.A. trade more with each other?''
( 2021, Vol. 41 No.3 )
Estimating a Gravity model for trade between the U.S. states, we find that politically and economically similar states trade more among themselves. We use two different definitions of political similarity based on outcomes in Presidential and Gubernatorial elections, and they all give similar results. For economic similarities, we follow the literature on Linder's hypothesis.
Keywords: Inter-state trade, U.S.A, Gravity model, Politics, Linder's hypothesis
JEL: F1 - Trade: General
Manuscript Received : Sep 17 2021 Manuscript Accepted : Sep 17 2021

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