National Borders Reduce Trade Between Countries by 20-50%
In this study, researchers aimed to understand how national borders affect trade between developed countries. They found that current methods used to study this have flaws and lack a solid basis. To tackle this, they created a new method that accurately estimates how trade is impacted by factors like borders. Applying their new method, they discovered that national borders lead to a reduction in trade among industrialized nations by around 20 to 50 percent.