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Exploring European Regional Trade

Author

Listed:
  • Ugur Yesilbayraktar
  • Marta Santamaría
  • Jaume Ventura

Abstract

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

  • Ugur Yesilbayraktar & Marta Santamaría & Jaume Ventura, 2023. "Exploring European Regional Trade," Working Papers 1384, Barcelona School of Economics.
    • Handle: RePEc:bge:wpaper:1384
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    References listed on IDEAS

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    12. Jens Wrona, 2018. "Border Effects Without Borders: What Divides Japan'S Internal Trade?," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 59(3), pages 1209-1262, August.
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    Cited by:

    1. Danilo Carullo & Paolo Di Caro & Ugo Fratesi, 2025. "The role of employment, labour productivity and trade linkages in the evolution of European regional disparities," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 74(1), pages 1-30, March.
    2. Rodolfo G. Campos & Benedikt Heid & Jacopo Timini, 2024. "The Economic Consequences of Geopolitical Fragmentation: Evidence from the Cold War," CESifo Working Paper Series 11057, CESifo.
    3. 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.
    4. Qiu, Shumin & Steinwender, Claudia & Azoulay, Pierre, 2025. "Paper tiger? Chinese science and home bias in citations," Journal of International Economics, Elsevier, vol. 157(C).
    5. Alessandro Borin & Francesco Paolo Conteduca & Fabrizio Leone & Michele Mancini & Patrick Zoi, 2025. "How Global Are Local Value Chains?," CESifo Working Paper Series 12271, CESifo.
    6. Hanna Adam & Mario Larch & Jordi Paniagua, 2023. "Spain, Split and Talk: Quantifying Regional Independence," CESifo Working Paper Series 10742, CESifo.
    7. Abou El-Komboz, Lena & Goldbeck, Moritz, 2024. "Virtually borderless? Cultural proximity and international collaboration of developers," Economics Letters, Elsevier, vol. 244(C).
    8. Norris, Jordan J., 2025. "A many-location home market effect and a home biased geography," Journal of International Economics, Elsevier, vol. 154(C).
    9. Lionel Fontagne & Krasimir Shishmanov & Penka Shishmanova & Yoto Yotov, 2025. "Asymmetric Impacts of Economic Integration: The Case of the Single European Market," Working Papers 202533, Center for Global Policy Analysis, LeBow College of Business, Drexel University.

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    Keywords

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    JEL classification:

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

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