European union and trade integration: does the home bias puzzle matter? Report as inadecuate




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Marta Bengoa Calvo ; Blanca Sánchez-Robles Rute ;Revista de Economía Mundial 2012, 32

Author: Valeriano Martínez San Román

Source: http://www.redalyc.org/


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Revista de Economía Mundial ISSN: 1576-0162 rem@uhu.es Sociedad de Economía Mundial España Martínez San Román, Valeriano; Bengoa Calvo, Marta; Sánchez-Robles Rute, Blanca EUROPEAN UNION AND TRADE INTEGRATION: DOES THE HOME BIAS PUZZLE MATTER? Revista de Economía Mundial, núm.
32, 2012, pp.
173-188 Sociedad de Economía Mundial Huelva, España Available in: http:--www.redalyc.org-articulo.oa?id=86625395007 How to cite Complete issue More information about this article Journals homepage in redalyc.org Scientific Information System Network of Scientific Journals from Latin America, the Caribbean, Spain and Portugal Non-profit academic project, developed under the open access initiative ISSN: 1576-0162 EUROPEAN UNION AND TRADE INTEGRATION: DOES THE HOME BIAS PUZZLE MATTER? UNIÓN EUROPEA E INTEGRACIÓN COMERCIAL: ¿RESULTA RELEVANTE EL EFECTO FRONTERA? Valeriano Martínez San Román Universidad de Cantabria valeriano.martinez@unican.es Marta Bengoa Calvo City College of New York (CUNY) Colin Powell Center for Policy Studies mbengoa@ccny.cuny.edu Blanca Sánchez-Robles Rute Universidad de Cantabria blanca.sanchez-robles@unican.es Recibido: enero de 2012; aceptado: junio de 2012 ABSTRACT This paper analyses the size of the border effect or home bias within the European Union (EU) with the aim to quantify its impact in the trade integration process which started in 1992.
The gravity model serves as a general framework where the use of sectoral data allows obtaining a more accurate measure of the border effects.
The econometric analysis applied to a gravity model that contains a high disaggregation in the data introduces heteroskedasticity problems together with the presence of zero values, therefore, in order to obtain consistent estimates, the use of the Poisson Pseudo-Maximum Likelihood estimation method is recommended.
Our results show that the bilateral trade flows depend upon the size and proximity of the trade partners, together with other variables ...





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