Editing Border (section)

== Border economics ==
{{Main|Border trade}}
{{See also|Customs|Cross-border trade|Free-trade zone}}
[[File:Tijuana border San Diego.jpg|thumb| The United States–Mexico border: [[San Diego]]–[[Tijuana]].]]
[[File:Borderbeachtj.jpg|thumb|A border wall on a beach separating the United States and Mexico]]
Borders undermine economic activity and development by reducing trade activity.<ref>{{Cite journal |last1=Anderson |first1=James E. |last2=van Wincoop |first2=Eric |date=2003 |title=Gravity with Gravitas: A Solution to the Border Puzzle |url=https://www.aeaweb.org/articles?id=10.1257/000282803321455214 |journal=[[American Economic Review]] |language=en |volume=93 |issue=1 |pages=170–192 |doi=10.1257/000282803321455214 |s2cid=7277314 |issn=0002-8282 |hdl=10532/3989 |hdl-access=free |access-date=2022-07-26 |archive-date=2022-07-26 |archive-url=https://web.archive.org/web/20220726174430/https://www.aeaweb.org/articles?id=10.1257/000282803321455214 |url-status=live }}</ref><ref>{{Cite journal |last=Nagy |first=Dávid Krisztián |date=2022 |title=Trade and Urbanization: Evidence from Hungary |journal=American Economic Journal: Microeconomics |language=en |volume=14 |issue=3 |pages=733–790 |doi=10.1257/mic.20180270 |s2cid=239873111 |issn=1945-7669|doi-access=free }}</ref><ref>{{Cite journal |last1=Brakman |first1=Steven |last2=Garretsen |first2=Harry |last3=van Marrewijk |first3=Charles |last4=Oumer |first4=Abdella |date=2012 |title=The Border Population Effects of EU Integration |url=https://onlinelibrary.wiley.com/doi/10.1111/j.1467-9787.2011.00752.x |journal=[[Journal of Regional Science]] |language=en |volume=52 |issue=1 |pages=40–59 |doi=10.1111/j.1467-9787.2011.00752.x |bibcode=2012JRegS..52...40B |s2cid=55067930 |hdl=10.1111/j.1467-9787.2011.00752.x |hdl-access=free |access-date=2022-07-26 |archive-date=2022-07-26 |archive-url=https://web.archive.org/web/20220726174429/https://onlinelibrary.wiley.com/doi/10.1111/j.1467-9787.2011.00752.x |url-status=live }}</ref>

The presence of borders often fosters certain economic features or anomalies. Wherever two jurisdictions come into contact, special economic opportunities arise for [[border trade]]. [[Smuggling]] provides a classic case; contrariwise, a border region may flourish on the provision of [[excise]] or of [[import]]–[[export]] services — legal or quasi-legal, [[Corruption|corrupt]] or legitimate. Different regulations on either side of a border may encourage [[Service (economics)|services]] to position themselves at or near that border: thus the provision of [[pornography]], of [[prostitution]], of [[alcohol (drug)|alcohol]], [[fireworks]], and/or of [[narcotics]] may cluster around borders, city limits, county lines, [[port]]s and [[airport]]s. In a more planned and official context, [[Special Economic Zone]]s (SEZs) often tend to cluster near borders or ports.

Even if the goods are not perceived to be undesirable, states will still seek to document and regulate the cross-border trade in order to collect [[tariffs]] and benefit from foreign currency exchange revenues.<ref name=ODI>{{cite web |last=Pavanello |first=Sara |date=2010 |url=http://www.odi.org.uk/resources/details.asp?id=4997&title=working-across-borders-harnessing-potential-cross-border-activities-improve-livelihood-security-horn-africa-drylands |title=Working across borders – Harnessing the potential of cross-border activities to improve livelihood security in the Horn of Africa drylands |archive-url=https://web.archive.org/web/20101112224025/http://www.odi.org.uk/resources/details.asp?id=4997&title=working-across-borders-harnessing-potential-cross-border-activities-improve-livelihood-security-horn-africa-drylands |archive-date=12 November 2010 |location=London |website=[[Overseas Development Institute]]}}</ref> Thus, there is the concept unofficial trade in goods otherwise legal; for example, the cross-border trade in livestock by [[pastoralists]] in the [[Horn of Africa]]. [[Ethiopia]] sells an estimated $250 to $300 million of livestock to [[Somalia]], [[Kenya]] and [[Djibouti]] every year unofficially, over 100 times the official estimate.<ref name="ODI"/>

Human economic traffic across borders (apart from [[kidnapping]]) may involve mass [[commuting]] between workplaces and residential settlements. The removal of internal barriers to [[commerce]], as in France after the [[French Revolution]] or in [[Europe]] since the 1940s, de-emphasizes border-based economic activity and fosters [[free trade]]. [[Euroregion]]s are similar official structures built around commuting across boundary.