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Competitiveness and interregional as well as international trade: The case of Catalonia

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  • Ghemawat, Pankaj
  • Llano, Carlos
  • Requena, Francisco

Abstract

Recent years have seen a surge of interest among industrial organization economists in using data on international trade flows as windows into competitiveness. For countries that are at least mid-sized (e.g., Spain), interregional trade tends to be as large as or significantly larger than international trade. The case of Catalonia, a Spanish region, illustrates how ignoring interregional flows can lead to erroneous inferences about a region's external competitiveness. Accounting for Catalonia's interregional as well as international flows shifts what is generally assessed to be a chronic trade deficit in goods into a surplus and changes diagnoses of which Catalan sectors generate external surpluses and who its key trading partners are. We also use a gravity model approach to estimate international border effects for Catalonia.

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  • Ghemawat, Pankaj & Llano, Carlos & Requena, Francisco, 2010. "Competitiveness and interregional as well as international trade: The case of Catalonia," International Journal of Industrial Organization, Elsevier, vol. 28(4), pages 415-422, July.
    • Handle: RePEc:eee:indorg:v:28:y:2010:i:4:p:415-422
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    Cited by:

    1. Amir Maghssudipour & Annalisa Caloffi & Marco Bellandi & Letizia Donati, 2022. "Language as a regional driver of the trade of place-sensitive products: The case of made-in-Italy goods," Working Papers - Economics wp2022_09.rdf, Universita' degli Studi di Firenze, Dipartimento di Scienze per l'Economia e l'Impresa.
    2. Noriaki Matsushima & Laixun Zhao, 2015. "Multimarket Linkages, Trade and the Productivity Puzzle," Review of International Economics, Wiley Blackwell, vol. 23(1), pages 1-13, February.
    3. Tamara Mata & Carlos Llano, 2013. "Social networks and trade of services: modelling interregional flows with spatial and network autocorrelation effects," Journal of Geographical Systems, Springer, vol. 15(3), pages 319-367, July.
    4. Noriaki Matsushima & Laixun Zhao, 2010. "Multimarket linkages, buyer power, and the productivity puzzle," ISER Discussion Paper 0797, Institute of Social and Economic Research, Osaka University.
    5. Carlos Llano & Almudena Esteban & Julian Pérez & Antonio Pulido, 2010. "Opening the Interregional Trade ‘‘Black Box’’: The C-Intereg Database for the Spanish Economy (1995—2005)," International Regional Science Review, , vol. 33(3), pages 302-337, July.
    6. Nuria Gallego & Carlos Llano, 2014. "The Border Effect and the Nonlinear Relationship between Trade and Distance," Review of International Economics, Wiley Blackwell, vol. 22(5), pages 1016-1048, November.
    7. Gallego López, Nuria & Llano Verduras, Carlos & Perez García, Julian, 2010. "Estimación de los flujos de transporte de mercancías interregionales trimestrales mediante técnicas de interpolación temporal/Estimating Quarterly Interregional Commodity Transport Flows by Means of T," Estudios de Economia Aplicada, Estudios de Economia Aplicada, vol. 28, pages 699(38á.)-6, Diciembre.
    8. Llano, C. & De la Mata, T. & Díaz-Lanchas, J. & Gallego, N., 2017. "Transport-mode competition in intra-national trade: An empirical investigation for the Spanish case," Transportation Research Part A: Policy and Practice, Elsevier, vol. 95(C), pages 334-355.
    9. Amitrajeet A. BATABYAL & Hamid BELADI, 2016. "Trade Between Creative Regions When The Input Elasticity Of Substitution Is Less Than Unity," Regional Science Inquiry, Hellenic Association of Regional Scientists, vol. 0(3), pages 11-18, December.
    10. James LeSage & Carlos Llano-Verduras, 2014. "Forecasting spatially dependent origin and destination commodity flows," Empirical Economics, Springer, vol. 47(4), pages 1543-1562, December.

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