Loumeau, G. (2025). Regional Borders, Commuting and Transport Network Integration Review of Economics and Statistics, 107(6):1573–1587.
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Affiliated authorGabriel Loumeau
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Publication year2025
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JournalReview of Economics and Statistics
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.