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Sebastian Benz
''Gravity with google maps: the border puzzle revisited''
( 2013, Vol. 33 No.3 )
I calculate road travel times between the capitals of US states and Canadian provinces with Google Maps. With this measure of trade cost I estimate the US-Canada border effect for aggregate and industry-level trade flows in line with the method introduced by Anderson and van Wincoop (2003), as well as using linar fixed effects and Poisson estimation. I find a high degree of heterogeneity in the resulting coefficients.
Keywords: Gravity, Border puzzle, Multilateral resistance
JEL: F1 - Trade: General
Manuscript Received : Aug 12 2013 Manuscript Accepted : Sep 17 2013

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