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Trade in the Triad: How Easy is the Access to Large Markets?

Author

Listed:
  • Lionel Fontagné
  • Thierry Mayer
  • Soledad Zignago
Abstract
In this paper, we measure market access between the United States, the EU, and Japan (the Triad), using the effect of national borders on trade patterns. We investigate overall and industry-level trends of bilateral trade openness and provide explanations for those using proxies for bilateral observed protection (tariffs and NTBs), home bias of consumers, product differentiation, and levels of FDI. The explanations related to actual protection, home bias and substitutability of goods put together explain a large part of the border effect between blocs of the Triad, although they do not explain the whole of the border effect puzzle.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Lionel Fontagné & Thierry Mayer & Soledad Zignago, 2004. "Trade in the Triad: How Easy is the Access to Large Markets?," Working Papers 2004-04, CEPII research center.
    • Handle: RePEc:cii:cepidt:2004-04
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    References listed on IDEAS

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    More about this item

    Keywords

    Border effects; Gravity model; International trade; Simulation; Tariffs; Market access; NTB; Opening-up;
    All these keywords.

    JEL classification:

    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
    • F15 - International Economics - - Trade - - - Economic Integration

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