Does trade creation by social and business networks hold in services? An analysis for Accommodation and Restaurants in Spain
Recent literature on the border effect fostered research on informal barriers to trade and the role of networks promoting it. In relation to social networks, it has been shown that the intensity of trade of goods is positively correlated with the migration flows between any pair of countries/regions. In this article it is investigated if such a relation also holds for the Spanish domestic trade flows of services. With this aim, a gravity model rooted in the Dixit–Stiglitz–Krugman theoretical frameworks is used taking advantage of a unique dataset on interregional trade flows of some of the main sectors linked to Tourism, namely, Accommodation and Restaurants. A different analysis of each sector separately is carried out, finding a big positive effect for Restaurants, but no effect for the Hostel industry. These novel results can be explained by forces driving the demand in each sector. Migration linkages are measured by means of Register data, regarding the stock of people born in each region living in the others. Business networks are approached by a matrix of companies in different regions operating in these key sectors that are connected.
|Date of creation:||Oct 2011|
|Contact details of provider:|| Postal: Francisco Tomás y Valiente, 5, 28049 Madrid|
Web page: http://www.uam.es/departamentos/economicas/analecon/default.html
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Belderbos, Rene & Sleuwaegen, Leo, 1998. "Tariff jumping DFI and export substitution: Japanese electronics firms in Europe," International Journal of Industrial Organization, Elsevier, vol. 16(5), pages 601-638, September.
- Pierre-Philippe Combes & Miren Lafourcade & Thierry Mayer, 2005.
"The Trade Creating Effects of Business and Social Networks: Evidence from France,"
Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers)
- Combes, Pierre-Philippe & Lafourcade, Miren & Mayer, Thierry, 2005. "The trade-creating effects of business and social networks: evidence from France," Journal of International Economics, Elsevier, vol. 66(1), pages 1-29, May.
- Dunlevy, James A. & Hutchinson, William K., 2001. "The Pro-Trade Effect of Immigration on American Exports During the Late Nineteenth and Early Twentieth Centuries," IZA Discussion Papers 375, Institute for the Study of Labor (IZA).
- Roger White & Bedassa Tadesse, 2008. "Cultural Distance and the US Immigrant-Trade Link," The World Economy, Wiley Blackwell, vol. 31(8), pages 1078-1096, 08.
- Fukunari Kimura & Hyun-Hoon Lee, 2006. "The Gravity Equation in International Trade in Services," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 142(1), pages 92-121, April.
When requesting a correction, please mention this item's handle: RePEc:uam:wpaper:201104. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Andrés Maroto-Sánchez)
If references are entirely missing, you can add them using this form.