ABSTRACT
Historically, the economic functions of borders were derived from the political, economic and strategic policies of the nation state and were largely determined in national capitals. Thus, borders were utilized to regulate the èntry (and sometimes the exit) of goods and services (things and people) in accordance with the policies of the nation state, independent of the specific needs of border-regions.1 Consequently, economists tended to treat borders primarily as barriers to commerce, frequently depriving the adjacent regions of their natural hinterland, thereby limiting their development.
