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Paper #1860

Exploring European regional trade
Marta Santamaría, Jaume Ventura i Uğur Yeşilbayraktar
Desembre 2022
We use the new dataset of trade flows across 269 European regions in 24 countries constructed in Santamaria et al. (2020) to systematically explore for the first time trade patterns within and across country borders. We focus on the differences between home trade, country trade and foreign trade. We document the following facts: (i) European regional trade has a strong home and country bias, (ii) geographic distance and national borders are important determinants of regional trade, but cannot explain the strong regional home bias and (iii) the home bias is heterogeneous across regions and seems to be driven by political regional borders.
Paraules clau:
Regional Trade, European Integration, Gravity Models
Codis JEL:
F00, F10, F14.
Àrea de Recerca:
Macroeconomia i Economia Internacional
Publicat a:
Journal of International Economics 146 (2023) 103747

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