Testing a methodology to split a national SAM and compute intra-national trade flows: an application for the Russian regions

Gabriele Standardi and Natalia Turdyeva

No 333050, Conference papers from Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project

Abstract: In this work we develop a parsimonious methodology to break a national SAM into its sub-country regional SAMs and derive the intra-national trade flows. To achieve this goal we make use of a modified version of the Simple Location Quotients which take into account the so-called border effect. We compare the intra-national trade flows calculated using our methodology against trade data for the eight Districts of the Russian Federation. The methodology can provide reasonable results to represent the overall intra-national trade structure which can be useful if the focus of the analysis is on multi-regional assessment and shocks propagation through trade mechanisms, substitution effects and relative prices across all the regions within the country. However, the proposed approach seems unsuitable to represent the economy and the trade of a single region and should not be used in studies which focus only specific sub-country units.

Keywords: International; Relations/Trade (search for similar items in EconPapers)
Date: 2019
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Persistent link: https://EconPapers.repec.org/RePEc:ags:pugtwp:333050

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