The costs of a border between an independent Scotland and the rest of the UK is estimated at 5.5 per cent of Scotland’s GDP

Trade within countries is usually assumed to be higher within countries than across national boundaries. David Comerford assesses whether this principle would apply between an independent Scotland and the rest of the UK. He writes that if the long-term situation mirrored that between the Republic of Ireland and the UK, there would be an estimated cost of around 5.5 per cent of Scottish GDP. However, Scotland could counteract that adverse effect if it achieves a level of trade with the rest of the world typical of the small countries of north-western Europe.

Blog: The Economics of Constitutional Change http://scotfes.com/

ESO: Background information: Scotland's future: Your guide to an independent Scotland http://www.europeansources.info/record/scotlands-future-your-guide-to-an-independent-scotland/

Website: ESRC: The Future of the UK and Scotland http://www.futureukandscotland.ac.uk/

ESO: Background information: Cameron and Salmond set out vision of independent Scotland and its oil wealth http://www.europeansources.info/record/cameron-and-salmond-set-out-vision-of-independent-scotland-and-its-oil-wealth/

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