Spaghetti, Noodle and Lapsha: Continental Bias in Trade in Eurasia

Abstract

In our analysis of cross-border linkages in Eurasia, we look first of all at the trade relations between countries. In order to evaluate the scope of internal trade flows in the continent, we have based our analysis on a formal gravity model.¹ Our main goal is to assess the influence on trade relations on the continent of the trade regime that has established itself in Eurasia, which is often nicknamed ‘spaghetti’ in Europe and ‘noodle’ in Asia. We add ‘lapsha’ (the Russian word for noodles) for Northern Eurasia to complete the Eurasian ‘trade cuisine’. We perform a simulation of trade potential and evaluate to what extent Eurasia and all its groupings over-trade or under-trade with each other.