Rethinking regional competitiveness: Catalonia's international and interregional trade, 1995-2006

Pankaj Ghemawat (), Carlos Llano and Francisco Requena Silvente
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Pankaj Ghemawat: IESE Business School, Postal: Research Division, Av Pearson 21, 08034 Barcelona, SPAIN
Carlos Llano: Universidad Autonoma de Madrid

No D/802, IESE Research Papers from IESE Business School

Abstract: Studies of competitiveness tend to focus on a local economy's global interactions, particularly its international trade. But for countries that are at least mid-sized (such as Spain), interregional trade tends to be as large as or significantly larger than international trade. The case of Catalonia illustrates the importance of interregional flows in truly analyzing and devising strategies for a region's external competitiveness. Accounting for interregional trade changes and performing analyses of Catalonia's overall merchandise trade balance, which sectors generate external surpluses as opposed to deficits, and who Catalonia's key trading partners are, and the use of a gravity-model approach to estimate external border effects at the regional level for Catalonia and the rest of Spain, reveal significant variations by sector and by trading partner, generally higher external border effects for exports than imports, and declines in border effects over time - but with a discernible flattening in recent years.

Keywords: Border Effect; Gravity Model; Interregional trade; transport flows (search for similar items in EconPapers)
JEL-codes: F14 F17 F21 L14 (search for similar items in EconPapers)
Pages: 30 pages
Date: 2009-07-11
New Economics Papers: this item is included in nep-cse, nep-geo and nep-int
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:ebg:iesewp:d-0802

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