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Exploring European regional trade

Marta Santamaría, Jaume Ventura and Uğur Yeşilbayraktar

Journal of International Economics, 2023, vol. 146, issue C

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.

Keywords: European regional trade; Home bias in trade; Borders and distance (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:eee:inecon:v:146:y:2023:i:c:s0022199623000338

DOI: 10.1016/j.jinteco.2023.103747

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