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Exploring European regional trade

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Abstract

We use the new dataset of trade flows across 269 European regions in 24 countries constructed in Santamaria 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

  • Marta Santamaría & Jaume Ventura & Uğur Yeşilbayraktar, 2022. "Exploring European regional trade," Economics Working Papers 1860, Department of Economics and Business, Universitat Pompeu Fabra.
    • Handle: RePEc:upf:upfgen:1860
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    Cited by:

    1. Marius Klein & Ferdinand Rauch, 2023. "Market Access and the Arrow of Time," CESifo Working Paper Series 10279, CESifo.

    More about this item

    Keywords

    Regional Trade; European Integration; Gravity Models;
    All these keywords.

    JEL classification:

    • F00 - International Economics - - General - - - General
    • F10 - International Economics - - Trade - - - General
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade

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