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Rethinking regional competitiveness: Catalonia's international and interregional trade, 1995-2006

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Author Info
Ghemawat, Pankaj () (IESE Business School)
Llano, Carlos (Universidad Autonoma de Madrid)
Requena, Francisco (Universidad de Valencia)
Abstract

Studies of competitiveness tend to focus on a local economy's global interactions, particularly its international trade. But for countries that are at least mid-sized (such as Spain), interregional trade tends to be as large as or significantly larger than international trade. The case of Catalonia illustrates the importance of interregional flows in truly analyzing and devising strategies for a region's external competitiveness. Accounting for interregional trade changes and performing analyses of Catalonia's overall merchandise trade balance, which sectors generate external surpluses as opposed to deficits, and who Catalonia's key trading partners are, and the use of a gravity-model approach to estimate external border effects at the regional level for Catalonia and the rest of Spain, reveal significant variations by sector and by trading partner, generally higher external border effects for exports than imports, and declines in border effects over time - but with a discernible flattening in recent years.

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Publisher Info
Paper provided by IESE Business School in its series IESE Research Papers with number D/802.

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Length: 30 pages
Date of creation: 11 Jul 2009
Date of revision:
Handle: RePEc:ebg:iesewp:d-0802

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Postal: IESE Business School, Av Pearson 21, 08034 Barcelona, SPAIN
Web page: http://www.iese.edu/
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Related research
Keywords: Border Effect; Gravity Model; Interregional trade; transport flows;

Find related papers by JEL classification:
F14 - International Economics - - Trade - - - Country and Industry Studies of Trade
F17 - International Economics - - Trade - - - Trade Forecasting and Simulation
F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
L14 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Transactional Relationships; Contracts and Reputation

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This page was last updated on 2009-11-18.

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