Exploring European Regional Trade

Santamaría, Marta, Jaume Ventura and Uğur Yeşilbayraktar
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Santamaría, Marta: University of Warwick
Jaume Ventura: CREI, Universitat Pompeu Fabra and Barcelona School of Economics
UÄŸur YeÅŸilbayraktar: Universitat Pompeu Fabra and Barcelona School of Economics

CAGE Online Working Paper Series from Competitive Advantage in the Global Economy (CAGE)

Abstract: We use the new dataset of trade flows across 269 European regions in 24 countries constructed in Santamaría 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.

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Date: 2022
New Economics Papers: this item is included in nep-geo, nep-int and nep-ure
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https://warwick.ac.uk/fac/soc/economics/research/c ... tions/wp650.2022.pdf

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Persistent link: https://EconPapers.repec.org/RePEc:cge:wacage:650

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