The Review of Economics and Statistics Vol. 107 No. 6 2025
Regional Borders, Commuting, and Transport Network Integration
Abstract
This paper exploits spatial quasiexperimental variation around French departmental borders to provide novel evidence that regional borders disturb surrounding economic activity; namely, commuting flows, catchment areas, and residential density. The lack of integration of local transport networks at regional borders—leading to a 4.5 km travel distance penalty when crossing borders—explains the observed border effects. Using a spatial quantifiable equilibrium framework and accounting for construction costs, a policy simulation exercise shows that integrating local transport networks leads to a 6.36% average growth in real per capita residential income.
- DOI
- 10.1162/rest_a_01350
- Volume
- 107
- Issue
- 6
- Pages
- 1573-1587
- Language
- en
- Sources
- openalex crossref