Garmendia, Aitor; Llano, Carlos; Minondo, Asier; … - In: Economics Letters 116 (2012) 2, pp. 178-182
Previous studies have shown that, not only countries, but also regions have a preference to trade within their administrative borders. Using unique trade flows data, we also find a large home bias in Spanish intranational trade. However, we show that this home bias tends to disappear once we...