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El acceso a la versión del editor puede requerir la suscripción del recurso Access to the published version may require subscription AbstractRecent literature on border effect has demonstrated that national trade (intra-as well as interregional trade) tends to be more intense than international trade. Unfortunately, owing to the dearth of information on interregional economic relations, this important aspect of the economy has remained relatively ignored. In this article, the authors have described the methodology and main results of the largest estimation of Spanish interregional trade (1995)(1996)(1997)(1998)(1999)(2000)(2001)(2002)(2003)(2004)(2005) carried out as a part of the C-Intereg project. The results obtained highlight the importance of the internal trade and the validity of the gravity model. Although the estimation focuses on the Spanish economy, the methodology can easily be applied to other European Union (EU) countries. In the upcoming years, this innovative database will be further developed in all its dimensions (space, time, and sectors) to serve as a promising

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Esta es la versión de autor del artículo publicado en:This is an author produced version of a paper published in: El acceso a la versión del editor puede requerir la suscripción del recurso Access to the published version may require subscription

Esta es la versión de autor del artículo publicado en:This is an author produced version of a paper published in: El acceso a la versión del editor puede requerir la suscripción del recurso Access to the published version may require subscriptionThe border effects in Spain: an industry-level analysisFrancisco Requena • Carlos LlanoAbstract A gravity-model approach is used to estimate the magnitude of the internal border (home bias) and external border (frontier) effects in Spain using industry-level trade flows. We find that the average border effects are about 30 and 10, respectively. Next we explore the variation in the industry-specific border effects. First, the border effects are larger in highly product differentiated industries. Second, the internal border effect is twice bigger for trade in intermediate goods than for trade in final goods. Third, conditioning on the geographic concentration of firms reduces significantly the internal border effect.