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Intranational Home Bias in the Presence of Wholesalers, Hub-spoke Structures and Multimodal Transport Deliveries

Nuria Gallego (), Carlos Llano Verduras, Tamara de la Mata () and Jorge Diaz-Lanchas

Spatial Economic Analysis, 2015, vol. 10, issue 3, 369-399

Abstract: When modelling interregional flows it is standard to identify the origin and destination of a flow with the point of production and consumption. However, the presence of hub-spoke structures or multimodal flows may introduce bias, such as being an additional source for cross-sectional correlation between dyadic flows. The aim of this paper is to model inter-provincial flows within a country (Spain) considering this potential bias using a novel dataset with 50 inter-provincial flows and four transport modes. We then feed this dataset into various specifications of a gravity model that incorporates cross-sectional dependence attributable to hub-spoke structures.

Date: 2015
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DOI: 10.1080/17421772.2015.1062126

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