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The Border Effect in Spain

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  • Salvador Gil-Pareja
  • Rafael Llorca-Vivero
  • José A. Martínez-Serrano
  • Josep Oliver-Alonso

Abstract

This paper analyses the border effect in Spain over the period 1995-98 using a data set on intranational trade that is unique in Europe. The results indicate that, after controlling for market size and distance, Spanish regions trade around 21 times more with the rest of Spain than they do with OECD countries. Moreover, the size of the Spanish bias is lower in the case of the Spanish regions’ exports than in the case of imports. Finally, the border effect is not uniform across Spanish regions.

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Paper provided by FEDEA in its series Working Papers with number 2004-28.

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Handle: RePEc:fda:fdaddt:2004-28

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References

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  1. Simon J. Evenett & Wolfgang Keller, 2002. "On Theories Explaining the Success of the Gravity Equation," Journal of Political Economy, University of Chicago Press, vol. 110(2), pages 281-316, April.
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  8. Toshihiro Okubo, 2003. "The Border Effect in the Japanese Market: A Gravity Model Analysis," Working Papers 494, Research Seminar in International Economics, University of Michigan.
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  10. John F. Helliwell, 1996. "Do National Borders Matter for Quebec's Trade?," Canadian Journal of Economics, Canadian Economics Association, vol. 29(3), pages 507-22, August.
  11. Barro, Robert & Alesina, Alberto, 2002. "Currency Unions," Scholarly Articles 4551795, Harvard University Department of Economics.
  12. Keith Head & Thierry Mayer, 2000. "Non-Europe: The magnitude and causes of market fragmentation in the EU," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 136(2), pages 284-314, June.
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  16. Michael Anderson & Stephen Smith, 1999. "Canadian Provinces in World Trade: Engagement and Detachment," Canadian Journal of Economics, Canadian Economics Association, vol. 32(1), pages 22-38, February.
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Citations

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Cited by:
  1. Carlos Llano & Asier Minondo & Francisco Requena, 2010. "Is the Border Effect an Artefact of Geographic Aggregation?," Working Paper Series 1210, Department of Economics, University of Sussex.
  2. José M. Labeaga & Xisco Oliver & Amedeo Spadaro, . "Measuring Changes in Health Capital," Working Papers 2005-15, FEDEA.
  3. José M. Labeaga & Ester Martínez Ros, . "Persistence and ability in the innovation decisions," Working Papers 2005-16, FEDEA.
  4. Ghemawat, Pankaj & Llano, Carlos & Requena, Francisco, 2009. "Rethinking regional competitiveness: Catalonia's international and interregional trade, 1995-2006," IESE Research Papers D/802, IESE Business School.
  5. Namkee Ahn, . "Life Satisfaction among Spanish Workers: Importance of Intangible Job Characteristics," Working Papers 2005-17, FEDEA.
  6. Ana Carolina Ortega Masagué, . "La situación laboral de los inmigrantes en España: Un análisis descriptivo," Working Papers 2005-08, FEDEA.
  7. Namkee Ahn & Juan Ramón García & José A. Herce, . "Demographic Uncertainty and Health Care Expenditure in Spain," Working Papers 2005-07, FEDEA.
  8. A Salim, Ruhu & Mahfuz Kabir, Mohammad, 2011. "Does More Trade Potential Remain in Arab States of the Gulf ?," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 26, pages 217-243.
  9. 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.
  10. Corinne Mette, . "Wellbeing and dependency among European elderly: The role of social integration," Working Papers 2005-12, FEDEA.
  11. Alexander W. Hoffmaister, 2006. "Barriers to Retail Competition and Prices," IMF Working Papers 06/231, International Monetary Fund.
  12. Matthieu Bussière & Jarko Fidrmuc & Bernd Schnatz, 2008. "EU Enlargement and Trade Integration: Lessons from a Gravity Model," Review of Development Economics, Wiley Blackwell, vol. 12(3), pages 562-576, 08.
  13. Salvador Gil-Pareja & Rafael Llorca & José A. Martínez-Serrano, 2011. "Is There A Continental Bias In Trade?," ERSA conference papers ersa10p792, European Regional Science Association.

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