Borders, ethnicity and trade
By: Jenny C. Aker ... [et al.].
Contributors: National Bureau of Economic Research
Series: NBER working paper series -- working paper 15960; Working paper series (National Bureau of Economic Research : Online) -- working paper no. 15960.
Publisher: National Bureau of Economic Research
Published: 2010
Place of publication: Cambridge, MA
Language: eng
Format: [electronic resource] /
Description: "Do national borders and ethnicity contribute to market segmentation between and within countries? This paper uses unique and high-frequency data on narrowly-defined goods to gauge the extent to which a national border impedes trade between developing countries (Niger and Nigeria).  Using a regression discontinuity approach, we find a significant price change at the national border, but one that is lower in magnitude than that found for industrialized countries.  Yet unlike that literature, and in line with important characteristics of African economies, we investigate the role of ethnicity in mitigating and exacerbating the border effect.  We find that a common ethnicity is linked to lower price dispersion across countries, yet ethnic diversity creates an internal border within Niger.  The primary mechanism behind the internal border effect appears to be related to the role of ethnicity in facilitating access to credit in rural markets"--National Bureau of Economic Research web site.
Notes: Title from PDF file as viewed on 5/11/2010.

Includes bibliographical references.

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