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Do politically and economically similar states in the U.S.A. trade more with each other?

Author

Listed:
  • Nawaraj S. Paudel

    (Southern Illinois University, Carbondale)

  • Sajal Lahiri

    (Southern Illinois University, Carbondale)

Abstract

Estimating a Gravity model for trade between the U.S. states, we find that politically and economically similar states trade more among themselves. We use two different definitions of political similarity based on outcomes in Presidential and Gubernatorial elections, and they all give similar results. For economic similarities, we follow the literature on Linder's hypothesis.

Suggested Citation

  • Nawaraj S. Paudel & Sajal Lahiri, 2021. "Do politically and economically similar states in the U.S.A. trade more with each other?," Economics Bulletin, AccessEcon, vol. 41(3), pages 1541-1552.
    • Handle: RePEc:ebl:ecbull:eb-21-00877
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    References listed on IDEAS

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    More about this item

    Keywords

    Inter-state trade; U.S.A; Gravity model; Politics; Linder's hypothesis;
    All these keywords.

    JEL classification:

    • F1 - International Economics - - Trade

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