Alternative measures of internal distance in estimating home bias in trade: the case of Croatia

Znanstveni rad - Izvorni znanstveni rad

• Autor: Jošić Hrvoje
• Autor: Jošić Mislav; MBZ: 286522
• Autorova ustanova: Sveučilište u Zagrebu; Ekonomski fakultet
• Znanstveno / umjetničko područje, polje i grana: DRUŠTVENE ZNANOSTI; Ekonomija

Sažetak (engleski)

The existence of home bias in trade is considered as one of six main puzzles in international economics. The measurement of the average intra-national distance has become the crucial issue in estimating the home bias in goods trade for countries with no internal trade data. The aim of this article is to demonstrate how different internal distance measurement affects home bias in trade. The results of the analysis indicate that sub-unit based weighted measures perform better in the assessment of Croatias internal distance than area based and measures based on relation to neighbour countries. In estimating the model, we use data on import values for Croatia according to standard gravity theory. Regression analysis corroborates theoretical assumptions regarding the impact of geographical distance of countries and transport costs on bilateral trade flows; imports from world are positively correlated with the GDP of imported countries and negatively correlated with the distance between them. The values of home bias variable for Croatias total imports were slightly higher than results obtained from previous explorations for EU countries meaning that there is still place for Croatias deeper integration into EU trade flows.

• Ključne riječi (engleski): International economics puzzles; home bias; trade; internal distance; Croatia
• Jezik: engleski
• Vrsta publikacije: Znanstveni rad - Izvorni znanstveni rad
• Status objave: Objavljen
• Vrsta recenzije: Recenziran - međunarodna recenzija
• Verzija publikacije: Objavljena verzija rada (izdavačev PDF)
• Naslov časopisa: Economic research - Ekonomska istraživanja
• Brojčani podaci: vol. 29, br. 1, str. 380-394
• BPC: 750
• p-ISSN: 1331-677X
• e-ISSN: 1848-9664
• DOI: https://doi.org/10.1080/1331677X.2016.1169702
• URN:NBN: urn:nbn:hr:148:438823
• Datum objave publikacije: 2017-01-08
• URL dokumenta: http://www.tandfonline.com/doi/full/10.1080/1331677X.2016.1169702
• Vrsta resursa: Tekst
• Prava pristupa: Otvoreni pristup
• Datum i vrijeme pohrane: 2017-02-09 11:28:36