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Affinities and Frictions of Trade Networks

Author

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  • Johansson, Borje
  • Westin, Lars

Abstract

This paper formulates a theoretical framework in which the analysis starts with supplier-customer links of micro type. From this we derive aggregate trade links between nodes in a spatial network. It is shown how affinities and barriers shape and influence the establishment of customer links, and how this forms aggregate patterns of flows. The framework is applied to three types of models for determining trade patterns-random discrete choice, information theory and gravity models. Essentially equivalent solutions are derived.

Suggested Citation

  • Johansson, Borje & Westin, Lars, 1994. "Affinities and Frictions of Trade Networks," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 28(3), pages 243-261, September.
    • Handle: RePEc:spr:anresc:v:28:y:1994:i:3:p:243-61
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    Cited by:

    1. E. Gencer & William Anderson, 2014. "An intra-industry trade model in a vertical differentiation framework," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 52(1), pages 201-226, January.
    2. Martin Andersson & Hans Lööf & Sara Johansson, 2008. "Productivity and International Trade: Firm Level Evidence from a Small Open Economy," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 144(4), pages 774-801, December.
    3. Johansson, Börje, 2004. "Parsing the Menagerie of Agglomeration and Network Externalities," Working Paper Series in Economics and Institutions of Innovation 2, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies.
    4. Erik Bergkvist, 2001. "The value of time and forecasting of flowsin freight transportation," ERSA conference papers ersa01p271, European Regional Science Association.
    5. Martin Andersson & Sara Johansson & Hans Lööf, 2012. "Firm Performance and International Trade – Evidence from a Small Open Economy," Chapters, in: Charlie Karlsson & Börje Johansson & Roger R. Stough (ed.), The Regional Economics of Knowledge and Talent, chapter 13, Edward Elgar Publishing.
    6. Erik Bergkvist & Lars Westin, 1998. "Estimation of interregional freight flows with a gravity model by OLS estimation, Poisson and neural network specifications," ERSA conference papers ersa98p255, European Regional Science Association.
    7. Shevtsova, Yevgeniya, 2015. "International Trade and Productivity: The Role of Industry and Export Destination," MPRA Paper 69793, University Library of Munich, Germany.
    8. Monnesland, Jan & Westlund, Hans, 1999. "Cross border Co-operation in low population density Areas," ERSA conference papers ersa99pa392, European Regional Science Association.
    9. Miroslav Mateev & Iliya Tsekov, 2014. "Are there any top FDI performers among EU-15 and CEE countries? A comparative panel data analysis," Financial Theory and Practice, Institute of Public Finance, vol. 38(3), pages 337-374.
    10. Westlund, Hans, 1999. "An interaction-cost approach on cross-border cooperation. The case of Mid-Scandinavia," ERSA conference papers ersa99pa391, European Regional Science Association.
    11. Polyzos Serafeim, 2009. "The Egnatia Motorway and The Changes in Interregional Trade in Greece: An Ex Ante Assessment," European Spatial Research and Policy, Sciendo, vol. 16(2), pages 23-47, December.
    12. Johnson, Andreas, 2006. "FDI inflows to the Transition Economies in Eastern Europe: Magnitude and Determinants," Working Paper Series in Economics and Institutions of Innovation 59, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies.

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