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Social networks and trade of services: modelling interregional flows with spatial and network autocorrelation effects

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  • Tamara Mata

    ()

  • Carlos Llano

    ()

Abstract

Recent literature on border effect has fostered research on informal barriers to trade and the role played by network dependencies. In relation to social networks, it has been shown that intensity of trade in goods is positively correlated with migration flows between pairs of countries/regions. In this article, we investigate whether such a relation also holds for interregional trade of services. We also consider whether interregional trade flows in services linked with tourism exhibit spatial and/or social network dependence. Conventional empirical gravity models assume the magnitude of bilateral flows between regions is independent of flows to/from regions located nearby in space, or flows to/from regions related through social/cultural/ethic network connections. With this aim, we provide estimates from a set of gravity models showing evidence of statistically significant spatial and network (demographic) dependence in the bilateral flows of the trade of services considered. The analysis has been applied to the Spanish intra- and interregional monetary flows of services from the accommodation, restaurants and travel agencies for the period 2000–2009, using alternative datasets for the migration stocks and definitions of network effects. Copyright Springer-Verlag Berlin Heidelberg 2013

Suggested Citation

  • Tamara Mata & Carlos Llano, 2013. "Social networks and trade of services: modelling interregional flows with spatial and network autocorrelation effects," Journal of Geographical Systems, Springer, vol. 15(3), pages 319-367, July.
  • Handle: RePEc:kap:jgeosy:v:15:y:2013:i:3:p:319-367
    DOI: 10.1007/s10109-013-0183-6
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Ehrich, Malte & Hess, Sebastian, 2015. "The Ability Of Organisations To Adopt Foreign Trade Standards," 55th Annual Conference, Giessen, Germany, September 23-25, 2015 209202, German Association of Agricultural Economists (GEWISOLA).
    2. 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.
    3. repec:kap:jgeosy:v:21:y:2019:i:2:d:10.1007_s10109-019-00293-3 is not listed on IDEAS
    4. Amitrajeet A. BATABYAL & Hamid BELADI, 2016. "Trade Between Creative Regions When The Input Elasticity Of Substitution Is Less Than Unity," Regional Science Inquiry, Hellenic Association of Regional Scientists, vol. 0(3), pages 11-18, December.

    More about this item

    Keywords

    Social networks; Gravity models; Trade of services; Internal tourism; Bayesian spatial autoregressive regression model; Spatial connectivity of origin–destination flows; C21; F12; F14; L83; R22;

    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Restaurants; Recreation; Tourism
    • R22 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Other Demand

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