Multidimensional Distance and Bilateral Export Flows: An Empirical Analysis of the Veneto Region

This thesis examines the export performance of the Veneto region over the period 2019–2024 through a multidimensional distance framework of the gravity model of international trade. The Veneto region provides a particularly relevant case study due to its strong export orientation, diversified manufacturing structure, and dense network of small and medium-sized enterprises. In such a context, export performance is likely to be shaped not only by transport-related costs, but also by institutional uncertainty and socio-cultural differences across destination markets. The empirical analysis investigates whether geographical distance remains a significant determinant of Veneto’s bilateral exports and whether institutional and cultural distance add explanatory power beyond geographical distance, particularly across different manufacturing sectors. Moreover, the empirical analysis explores whether trade frictions contribute to the emergence of patterns consistent with nearshoring, friendshoring, and market diversification, as firms attempt to mitigate multidimensional risks from global shocks.