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

Author

Listed:
  • Nuria Gallego
  • Carlos Llano
  • Tamara De La Mata
  • Jorge DÍaz-Lanchas

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.

Suggested Citation

  • Nuria Gallego & Carlos Llano & Tamara De La Mata & Jorge DÍaz-Lanchas, 2015. "Intranational Home Bias in the Presence of Wholesalers, Hub-spoke Structures and Multimodal Transport Deliveries," Spatial Economic Analysis, Taylor & Francis Journals, vol. 10(3), pages 369-399, September.
    • Handle: RePEc:taf:specan:v:10:y:2015:i:3:p:369-399
    DOI: 10.1080/17421772.2015.1062126
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    References listed on IDEAS

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    1. Nitsch, Volker, 2002. "Border Effects and Border Regions: Lessons from the German Unification," Discussion Paper Series 26291, Hamburg Institute of International Economics.
    2. Djankov, Simeon & Freund, Caroline, 2000. "Disintegration and trade flows : evidence from the Former Soviet Union," Policy Research Working Paper Series 2378, The World Bank.
    3. Diaz-Lanchas, Jorge & Llano, Carlos & Zofío, José Luis, 2013. "Trade margins, transport cost thresholds and market areas: Municipal freight flows and urban hierarchy," Working Papers in Economic Theory 2013/10, Universidad Autónoma de Madrid (Spain), Department of Economic Analysis (Economic Theory and Economic History).
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    1. Yilmazkuday, Hakan, 2012. "Understanding interstate trade patterns," Journal of International Economics, Elsevier, vol. 86(1), pages 158-166.
    2. Jorge Díaz-Lanchas & José Luis Zofío & Carlos Llano, 2022. "A trade hierarchy of cities based on transport cost thresholds," Regional Studies, Taylor & Francis Journals, vol. 56(8), pages 1359-1376, August.
    3. Wessel, Jan, 2019. "Evaluating the transport-mode-specific trade effects of different transport infrastructure types," Transport Policy, Elsevier, vol. 78(C), pages 42-57.
    4. Carlos Llano & Santiago Pérez-Balsalobre & Julian Pérez-García, 2018. "Greenhouse Gas Emissions from Intra-National Freight Transport: Measurement and Scenarios for Greater Sustainability in Spain," Sustainability, MDPI, vol. 10(7), pages 1-33, July.
    5. 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.
    6. Patricio Aroca & Randall Jackson, 2018. "Value Chains: Production Upstreamness and Downstreamness Revisited," Working Papers Working Paper 2018-01_R1, Regional Research Institute, West Virginia University.
    7. Carlos Llano-Verduras & Santiago Pérez-Balsalobre & Ana Rincón-Aznar, 2021. "Market fragmentation and the rise of sub-national regulation," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 67(3), pages 765-797, December.
    8. Santiago Perez Balsalobre & Carlos Llano Verduras & Jorge Diaz-Lanchas, 2019. "Measuring subnational economic complexity: An application with Spanish data," JRC Working Papers on Territorial Modelling and Analysis 2019-05, Joint Research Centre.

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