Border effect

Border effects refer to asymmetries in trade patterns between cities and regions of different countries that share a national border and those that are located in the same country. Usually, trade volume is much lesser between the former cities and regions. Economic integration (as in the EU) may be a solution to overcome these effects. Border effects refer to asymmetries in trade patterns between cities and regions of different countries that share a national border and those that are located in the same country. Usually, trade volume is much lesser between the former cities and regions. Economic integration (as in the EU) may be a solution to overcome these effects.