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Exploring European Regional Trade

Author

Listed:
  • Santamaría, Marta

    (University of Warwick)

  • Ventura, Jaume

    (CREI, Universitat Pompeu Fabra and Barcelona School of Economics)

  • YeÅŸilbayraktar, UÄŸur

    (Universitat Pompeu Fabra and Barcelona School of Economics)

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

  • Santamaría, Marta & Ventura, Jaume & YeÅŸilbayraktar, UÄŸur, 2022. "Exploring European Regional Trade," CAGE Online Working Paper Series 650, Competitive Advantage in the Global Economy (CAGE).
    • Handle: RePEc:cge:wacage:650
    as

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    File URL: https://warwick.ac.uk/fac/soc/economics/research/centres/cage/manage/publications/wp650.2022.pdf
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    References listed on IDEAS

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