THE ANALYSIS OF INTER-REGIONAL TRADE AND INVESTMENT FLOWS: THE AGGREGATED NET TRADE LEVEL IN THE SPANISH PROVINCES

This study examines the relationship between trade and potential determinants: GDP, FDI, unemployment rate in Spanish provinces while incorporting spatial dependence. This methodological paper contributes to the literature because it evaluates trade at a more disaggregated level and includes FDI to explain the trade pattern. The research concludes that: (1) Only considering GDP and unemployment rate; increase in economic growth or a decrease in unemployment rate could motivate trade in the province; likewise trade of the neighbors will increase the competition, which could decrease the province sales. (2) If FDI is included, FDI received by the neighbor provinces could decrease the exports of the province because it makes its rivals more productive and competitive.


Variant title:
EL ANALISIS DE COMERCIO INTER REGIONAL Y FLUJOS DE INVERSION: NIVEL DE COMERCIO AGREGADO EN LAS PROVINCIAS DE ESPANA
Issue Date:
2015
Publication Type:
Conference Paper/ Presentation
PURL Identifier:
http://purl.umn.edu/205589
JEL Codes:
F10; F14; F39
Series Statement:
POSTER
6603




 Record created 2017-04-01, last modified 2017-08-28

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