Spain, Split and Talk: Quantifying Regional Independence

Hanna Adam, Mario Larch and Jordi Paniagua ()

No 231, Working Papers from Bavarian Graduate Program in Economics (BGPE)

Abstract: We quantify the economic impact of a potential secession of Catalonia from Spain. Using a novel dataset of trade flows between 17 Spanish sub-national regions and 142 countries, we estimate the effects of different levels of borders on trade flows and un- cover heterogeneity in country-to-country, region-to-country, region-to-region, and EU border effects. We use a general equilibrium analysis to understand the con- sequences of a potential Catalan secession, considering the associated political un- certainty. In counterfactual experiments, we impose new borders on Catalan trade, potentially within or outside the EU, resulting in a welfare decline for Catalonia and the remaining Spanish regions.

Keywords: international trade; regional trade; border effects; regional independence (search for similar items in EconPapers)
Pages: 48 pages
Date: 2024-01
New Economics Papers: this item is included in nep-geo, nep-int and nep-ure
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https://www.bgpe.de/files/2024/02/231_AdamLarchPaniagua.pdf First version, 2024 (application/pdf)

Related works:
Working Paper: Spain, Split and Talk: Quantifying Regional Independence (2024)
Working Paper: Spain, Split and Talk: Quantifying Regional Independence (2023)
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Persistent link: https://EconPapers.repec.org/RePEc:bav:wpaper:231_adamlarchpaniagua

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