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Recent literature on border effect has fostered research on informalbarriers to trade and the role played by network dependencies. In relation to socialnetworks, it has been shown that intensity of trade in goods is positively correlatedwith migration flows between pairs of countries/regions. In this article, we investigatewhether such a relation also holds for interregional trade of services. We alsoconsider whether interregional trade flows in services linked with tourism exhibitspatial and/or social network dependence. Conventional empirical gravity modelsassume the magnitude of bilateral flows between regions is independent of flows to/from regions located nearby in space, or flows to/from regions related throughsocial/cultural/ethic network connections. With this aim, we provide estimates froma set of gravity models showing evidence of statistically significant spatial andnetwork (demographic) dependence in the bilateral flows of the trade of servicesconsidered. The analysis has been applied to the Spanish intra- and interregionalmonetary flows of services from the accommodation, restaurants and travel agenciesfor the period 2000 2009, using alternative datasets for the migration stocks anddefinitions of network effects.This paper hasbeen developed in the context of different research projects: TransporTrade S2007/HUM/497,(www.uam.es/transportrade), funded by the Education Department of the Madrid Regional Government; the Project (ECO2010 21643/ECON) by the Spanish Ministry of Science and Innovation, as well asthe DESTINO Project (Ministerio de Fomento). T. de la Mata also acknowledges the fund received fromthe Universidad Auto´noma de Madrid (Programa FPI UAM). Carlos Llano also thanks the supportreceived by the New York University Economics Department, where part of this work was alsoaccomplished during an academic stay in the Fall semester 201

Social networks and trade of services: modelling interregional flows with spatial and network autocorrelation effects