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On the Determinants of Regional Trade Flows

Author

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  • Rosella Nicolini
Abstract
This article proposes an empirical investigation of regional trade flows following a cross-section method. For this purpose, the author refers to a regional context looking at a chosen sample of European regions. She mainly intends to assess the role of the home market effect and the level of transport costs in driving regional export flows. In particular, she is interested in testing the importance of spatial components in regional trade analysis. By simply adapting the gravity model approach to her framework, she is able to prove that physical distance smooths the intensity of trading flows while local transport facilities as well as local demand foster them.

Suggested Citation

  • Rosella Nicolini, 2003. "On the Determinants of Regional Trade Flows," International Regional Science Review, , vol. 26(4), pages 447-465, October.
    • Handle: RePEc:sae:inrsre:v:26:y:2003:i:4:p:447-465
    DOI: 10.1177/0160017603259181
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    References listed on IDEAS

    as
    1. Davis, Donald R. & Weinstein, David E., 1999. "Economic geography and regional production structure: An empirical investigation," European Economic Review, Elsevier, vol. 43(2), pages 379-407, February.
    2. Alan V. Deardorff, 2011. "Determinants of Bilateral Trade: Does Gravity Work in a Neoclassical World?," World Scientific Book Chapters, in: Robert M Stern (ed.), Comparative Advantage, Growth, And The Gains From Trade And Globalization A Festschrift in Honor of Alan V Deardorff, chapter 24, pages 267-293, World Scientific Publishing Co. Pte. Ltd..
    3. Feenstra, Robert & Markusen, James R. & Rose, Andrew K, 1998. "Understanding the Home Market Effect and the Gravity Equation: The Role of Differentiating Goods," CEPR Discussion Papers 2035, C.E.P.R. Discussion Papers.
    4. Maurice Obstfeld & Kenneth Rogoff, 2001. "The Six Major Puzzles in International Macroeconomics: Is There a Common Cause?," NBER Chapters, in: NBER Macroeconomics Annual 2000, Volume 15, pages 339-412, National Bureau of Economic Research, Inc.
    5. Simon J. Evenett & Wolfgang Keller, 2002. "On Theories Explaining the Success of the Gravity Equation," Journal of Political Economy, University of Chicago Press, vol. 110(2), pages 281-316, April.
    6. Weder, Rolf, 1995. "Linking Absolute and Comparative Advantage to Intra-industry Trade Theory," Review of International Economics, Wiley Blackwell, vol. 3(3), pages 342-354, October.
    7. Egger, Peter, 2000. "A note on the proper econometric specification of the gravity equation," Economics Letters, Elsevier, vol. 66(1), pages 25-31, January.
    8. Anderson, James E, 1979. "A Theoretical Foundation for the Gravity Equation," American Economic Review, American Economic Association, vol. 69(1), pages 106-116, March.
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    Cited by:

    1. Salimova, Dina & Ponomarev, Yuri, 2021. "Transport infrastructure and geography of regional export in Russia," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 63, pages 51-75.
    2. Tsekeris, Theodore, 2017. "Domestic transport effects on regional export trade in Greece," Research in Transportation Economics, Elsevier, vol. 61(C), pages 2-14.
    3. Pedro Albarran & Raquel Carrasco & Adelheid Holl, 2013. "Domestic transport infrastructure and firms’ export market participation," Small Business Economics, Springer, vol. 40(4), pages 879-898, May.
    4. Albarrán, Pedro, 2009. "Transport infraestructure, sunk costs and firms' export behaviour," UC3M Working papers. Economics we092213, Universidad Carlos III de Madrid. Departamento de Economía.
    5. Volpe Martincus, Christian & Blyde, Juan, 2013. "Shaky roads and trembling exports: Assessing the trade effects of domestic infrastructure using a natural experiment," Journal of International Economics, Elsevier, vol. 90(1), pages 148-161.
    6. Bottasso, Anna & Conti, Maurizio & Santagata, Marta, 2022. "Transport Infrastructure and Trade: A Survey of the Empirical Literature," Economia Internazionale / International Economics, Camera di Commercio Industria Artigianato Agricoltura di Genova, vol. 75(4), pages 447-464.
    7. Mesquita Moreira, Mauricio & Blyde, Juan & Volpe, Christian & Molina, Danielken, 2013. "Too Far to Export: Domestic Transport Costs and Regional Export Disparities in Latin America and the Caribbean," MPRA Paper 59736, University Library of Munich, Germany.
    8. Amir Maghssudipour & Annalisa Caloffi & Marco Bellandi & Letizia Donati, 2022. "Language as a regional driver of the trade of place-sensitive products: The case of made-in-Italy goods," Working Papers - Economics wp2022_09.rdf, Universita' degli Studi di Firenze, Dipartimento di Scienze per l'Economia e l'Impresa.
    9. Marianne Matthee & Wim Naudé, 2008. "The Determinants of Regional Manufactured Exports from a Developing Country," International Regional Science Review, , vol. 31(4), pages 343-358, October.

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