The Nordic Borders are not Alike

Abstract

Aim To pinpoint the most important and interesting border trade areas for alcoholic beverages in the Nordic countries and to investigate patterns of routes and directions of border trade with alcoholic beverages in these areas. Data & Methods Travellers' alcohol imports in general and border trade in alcoholic beverages in particular are studied in Denmark, Finland, Iceland, Norway and Sweden, paying special attention to different borders and border areas in the Nordic countries. Results The main motive for border trade in alcohol is differences in the prices of alcoholic beverages. The greater the price difference the higher the volume of border trade in alcoholic beverages, ceteris paribus. However, differences in alcohol prices are by no means the only factors affecting the volume of border trade in alcohol. In the Nordic countries the volume of cross-border trade in alcoholic beverages is currently especially significant in five geographic areas. Conclusions Not only factors derived from the basic economic theory of consumer behaviour, but a mixed variety of intervening factors, as for instance manmade hindrances or geographical circumstances, markedly influence cross-border trade in alcoholic beverages in the Nordic countries.