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The return of the border walls

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  • Vetonatus K. Kamwela
  • Binyam Afewerk Demena
  • Peter A.G. van Bergeijk

Abstract

Since the early 2000s, border walls and fences have proliferated and become a global phenomenon with about a third of the countries having at least one wall or fence along its borders. Taking proper account for endogeneity, phasing-in effects and reverse causality, our gravity model for the years 1990–2017 (118 countries) finds a stronger trade-reducing impact of physical border protection structures ranging from 59% to 72%. This impact of physical border protection measures is non-monotonic: the immediate walls effect is insignificant but over the first 4 years after the creation of a wall, it starts to slash trade flows strongly and significantly.

Suggested Citation

  • Vetonatus K. Kamwela & Binyam Afewerk Demena & Peter A.G. van Bergeijk, 2024. "The return of the border walls," Applied Economics, Taylor & Francis Journals, vol. 56(52), pages 6584-6597, November.
    • Handle: RePEc:taf:applec:v:56:y:2024:i:52:p:6584-6597
    DOI: 10.1080/00036846.2023.2275218
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