IDEAS home Printed from https://ideas.repec.org/a/taf/specan/v21y2026i2p267-287.html

Trade, gravity and cross-sectional dependence

Author

Listed:
  • Ioanna Tziolas
  • Petros Milionis
  • J. Paul Elhorst

Abstract

We study how empirical analyses of trade flows based on the gravity model are affected by cross-sectional dependence (CSD) using novel panel data of trade between countries and regions of the European Union, which permits comparisons at different levels of aggregation. We document that CSD is not a problem when the model is estimated with country-level flows, but is a problem in estimations with more disaggregate region-level flows. This is due to local spatial dependence, which is not accounted for in common implementations of the model with fixed effects, but can be captured by including spatial lags into the model.

Suggested Citation

  • Ioanna Tziolas & Petros Milionis & J. Paul Elhorst, 2026. "Trade, gravity and cross-sectional dependence," Spatial Economic Analysis, Taylor & Francis Journals, vol. 21(2), pages 267-287, April.
    • Handle: RePEc:taf:specan:v:21:y:2026:i:2:p:267-287
    DOI: 10.1080/17421772.2025.2606782
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/17421772.2025.2606782
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/17421772.2025.2606782?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:specan:v:21:y:2026:i:2:p:267-287. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/RSEA20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.