Home sweet home: The home bias in trade in the European Union

Arbeitspapier

This study examines the home bias in trade in goods and services within the European Union. Using the newest release of the World Input Output database, available for the years 2000-2014, the effect is estimated using gravity regressions. The trade-reducing effect of borders is found to be sizeable. It is greater for trade in services than for goods, though the former declined more markedly throughout the period. The paper extends current literature by demonstrating and analysing the variation in the bias across Europe. The border effect is larger in Central and Eastern Europe than in other parts of the continent. The differences in the effect can be largely explained by the depth of a country's integration with the European Union. The number of years passed since a country joined the EU has a significant impact on the bias. The longer a country has been in the EU, the lower its home bias, with the first years of membership having the largest (in absolute terms) effect.

Angaben zum Objekt

• ISBN: 978-92-899-2768-0
• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: ECB Working Paper ; No. 2046

Klassifikation und Themen

• Klassifikation: Wirtschaft ; International Economic Order and Integration ; Economic Integration ; Empirical Studies of Trade
• Thema: trade ; gravity ; border effect ; European Union

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Mika, Alina
• Ereignis: Veröffentlichung
• (wer): European Central Bank (ECB)
• (wo): Frankfurt a. M.
• (wann): 2017

Weitere Informationen

• DOI: doi:10.2866/161796
• Handle: http://hdl.handle.net/10419/162667
• Letzte Aktualisierung: 10.03.2025, 11:42 MEZ