Abstract
How much do borders matter? National governments and international organizations have done much to reduce the artificial barriers that impede trade and other cross-border flows, but are we yet in a position where borders can be considered inconsequential, at least in an economic sense? The impact of decreased border obstacles will likely be most pronounced for firms in former border areas, who are confronted with markets, competitors, and other influences from which the border previously insulated them. Among these influences are technological and economic spill-over effects, which may become more pronounced as the border no longer poses an impenetrable barrier. In border regions, the removal of obstacles at borders could lead to cross-border homogenization such that both profit from integration, or both lose as economic activity relocates to other “core” regions. It is also possible though that one such region becomes a “core” region and acts as a magnet to attract economic activities from the other region, leading to an increased divergence between the two regions.
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Notes
- 1.
It takes 2 hours to travel by car from the north of Zeeland to the south of East Flanders.
- 2.
Degree of shortage is for example “low probability,” “low importance,” and “low dependency”. Degree of abundance is for example “high probability,” “high importance,” and “high dependency”.
- 3.
The missing variables were split 207—101 between East Flanders and Zeeland. For more information with respect to missing variables, the reader is referred to Table A2.2.
- 4.
Although, as noted above, Porter argues that education is a government concern he considers the knowledge infrastructure to be a factor condition.
- 5.
Due to the ordinal nature of the data only median scores will be reported.
- 6.
At the 10% level.
- 7.
At the 1% level.
- 8.
Given that favourable tax rates are a recoded variable, a lower score indicates that favourable tax rates are considered less important to the firm.
- 9.
Thus, all scores equal to 1, i.e., cases where a respondent indicates that an item is as present as desired are left out of the analysis.
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Brugman, P., Verbeke, A. (2018). The Persistent Relevance of Transborder (Focal) Regions: The Case of the European Blue Banana. In: Haezendonck, E., Verbeke, A. (eds) Sustainable Port Clusters and Economic Development. Palgrave Studies in Maritime Economics. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-319-96658-8_3
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