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

Mika, Alina, (2017), “Home sweet home: the home bias in trade in the European Union”, ECB Working Paper Series No 2046, April

The aim of the paper is to answer the following question: do European Union countries trade domestically more than they would trade with their itnernaitonal clones? While this question may appear somewhat hypothetical, it is useful in understanding how much borders between countries hinder trade flows. To answer this question, data on trade between and within the 28 European Union member countries were used. Thanksto the release of the World Input Output database domestic and international trade flows can be computed reliably, using olny one data source.

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