Centrality bias in inter-city trade
Year: 2024
Type: article
Abstract: Using Japanese inter-city trade data, we find a substantial centrality bias in aggregate gravity estimations: Shipments from large cities (central places) to their hinterland are 50%–125% larger than predicted by gravity forces. We argue that this discrepancy results from aggregating across industries , that concentrate in a few central places, which predominantly serve their respective hinterlands. Decomposing the centrality bias along the margins of our data, we attribute most of the centrality bias to substantially larger extensive industry margins in exports from larger cities to their smaller hinterland cities than vice versa.
Authors: Tomoya Mori, Jens Wrona
Language: English
Subfield: Economics and Econometrics
Domain: Social Sciences
Open Access status: hybrid
Estimated APC paid: $3,490
Awards: Regional Preferences and the Formation of Regional Economic Blocs: Examining the Causal Relationship between Regional Preference Similarity and Market Integration, Agglomeration and spatial economy: Reconstruction of theoretical and empirical framework, Dynamics Prices of Goods, Services and Real Estate Japan: Understanding and Reconstructing Statistics Using Big Data
OpenAlex ID: W3131014266