Department of Economics and Business - Universitat Pompeu Fabra

Title:: Exploring European regional trade
Authors:: Marta Santamaría, Jaume Ventura and Uğur Yeşilbayraktar
Date:: December 2022
Abstract:: 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.
Keywords:: Regional Trade, European Integration, Gravity Models
JEL codes:: F00, F10, F14.
Area of Research:: Macroeconomics and International Economics
Published in:: Journal of International Economics 146 (2023) 103747

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