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Type: Journal article
Title: A two-methodology comparison study of a spatial gravity model in the context of interregional trade flows
Author: Alamá-Sabater, L.
Márquez-Ramos, L.
Navarro-Azorín, J.
Suárez-Burguet, C.
Citation: Applied Economics, 2015; 47(14):1481-1493
Publisher: Taylor & Francis
Issue Date: 2015
ISSN: 0003-6846
Statement of
Luisa Alamá-Sabater, Laura Márquez-Ramos, José Miguel Navarro-Azorín and Celestino Suárez-Burguet
Abstract: This article argues that the introduction of spatial interactions to model the determinants of origin-destination (OD) flows can potentially result in excessive contiguity. To explain flows between OD regions, it is not only what happens in the origin and destination that is relevant, but also what happens in their neighbouring regions. However, what happens if there is a high degree of overlap between origin neighbouring areas and destination neighbouring areas? The article presents an empirical illustration to reexamine the evidence presented in previous research (Alamá-Sabater et al., 2013) and more closely analyses the territorial level, focusing on the case of interregional trade of goods at the NUTS3 level (Spanish provinces). We then use two different methodologies within the framework of a spatial gravity equation for interregional trade modelling. The findings confirm the importance of spatial dependence on trade flows and in particular that logistics decisions within a province affect shipments from contiguous provinces.
Keywords: gravity; spatial dependence; connectivity; interregional trade; Spanish provinces
Rights: © 2015 Taylor & Francis
RMID: 0030053105
DOI: 10.1080/00036846.2014.997929
Appears in Collections:Institute for International Trade publications

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