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A New Approach to Measure Italian Regional Trade Flows with Administrative Micro Firm-Level Data

Author

Listed:
  • Alessio Baldassarre

    (Italian Ministry of Economy and Finance)

  • Danilo Carullo

    (Italian Ministry of Economy and Finance)

  • Paolo Caro

    (University of Rome La Sapienza)

  • Elisa Fusco

    (SOGEI SpA)

  • Pasquale Giacobbe

    (University of Calabria)

  • Carlo Orecchia

    (Italian Ministry of Economy and Finance)

Abstract

In this paper, we present a novel approach to measure domestic bilateral trade flows in intermediate and final consumption in the Italian regions. We reconstruct regional trade flows in final consumption by using administrative data from tax returns that limit the issues of survey-based measures. We also investigate the main determinants of domestic regional trade flows in Italy by adopting a spatial gravity modeling framework that allows for the inclusion of multiple spatial dependence effects. Moreover, we provide evidence of the presence of geographical heterogeneity and a specific focus on trade flows in the manufacturing sector. Our findings, which are robust to alternative specifications, suggest that the introduction of different sources of spatial dependence is relevant to understand the occurrence of multiple types of network effects when considering origin, destination, and origin–destination linkages in trade flows. We also document regional differences in the spatial concentration of trade flows in intermediate and final consumption. Finally, we discuss the main implications and future avenues of inquiry of our research.

Suggested Citation

  • Alessio Baldassarre & Danilo Carullo & Paolo Caro & Elisa Fusco & Pasquale Giacobbe & Carlo Orecchia, 2025. "A New Approach to Measure Italian Regional Trade Flows with Administrative Micro Firm-Level Data," Italian Economic Journal: A Continuation of Rivista Italiana degli Economisti and Giornale degli Economisti, Springer;Società Italiana degli Economisti (Italian Economic Association), vol. 11(1), pages 65-101, March.
  • Handle: RePEc:spr:italej:v:11:y:2025:i:1:d:10.1007_s40797-023-00234-6
    DOI: 10.1007/s40797-023-00234-6
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    More about this item

    Keywords

    Regional trade flows; Spatial Gravity models; Heterogeneous coefficient model; Administrative micro data;
    All these keywords.

    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • D57 - Microeconomics - - General Equilibrium and Disequilibrium - - - Input-Output Tables and Analysis
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • R15 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Econometric and Input-Output Models; Other Methods

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