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Exploring European regional trade

Author

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  • Santamaría, Marta
  • Ventura, Jaume
  • Yeşilbayraktar, Uğur

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.

Suggested Citation

  • Santamaría, Marta & Ventura, Jaume & Yeşilbayraktar, Uğur, 2023. "Exploring European regional trade," Journal of International Economics, Elsevier, vol. 146(C).
    • Handle: RePEc:eee:inecon:v:146:y:2023:i:c:s0022199623000338
    DOI: 10.1016/j.jinteco.2023.103747
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    References listed on IDEAS

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    1. Hanna Adam & Mario Larch & Jordi Paniagua, 2023. "Spain, Split and Talk: Quantifying Regional Independence," CESifo Working Paper Series 10742, CESifo.

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