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Journal articles on the topic 'Gravity model of international trade'

Author: Grafiati

Published: 4 June 2021

Last updated: 25 July 2025

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1

Sejdini, Abdulmenaf, and Ilirjana Kraja. "International Trade of Albania. Gravity Model." European Journal of Social Sciences Education and Research 2, no. 1 (2014): 220. http://dx.doi.org/10.26417/ejser.v2i1.p220-228.

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Today we live in a world where such economic globalization and technological developments have created many advantages but also shortcomings regarding social and economic development of different countries of the world. Since the beginning of the transition until the trade regime now, our country has undergone profound changes. Therefore, the aim of this paper is to see the major development steps of international trade in Albania over the years and look at the key factors that have contributed to it. The paper provides some theoretical and empirical considerations regarding trade development

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Shahriar, Saleh, Lu Qian, Sokvibol Kea, and Nazir Muhammad Abdullahi. "The gravity model of trade." Review of innovation and competitiveness 5, no. 1 (2019): 21–42. http://dx.doi.org/10.32728/ric.2019.51/2.

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Purpose. The purpose of this study is to trace the theoretical developments of the gravity model of trade. The key question is: what are the dominant features of the development of the gravity trade model? Methodology. This research is conducted by employing a number of methods that include the historical, descriptive and analytical methods. The main contribution of this paper is to trace the historical and theoretical development phases of the gravity model. Findings. This study is a novel attempt in terms of the identification of the four distinctive phases of the development of the gravity

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DINCER, Gonul. "The Gravity Model in International Trade Theory." Ekonomik Yaklasim 24, no. 88 (2013): 1. http://dx.doi.org/10.5455/ey.35200.

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Galetska, Tetiana, Natalia Topishko, and Sergii Galetskyi. "GRAVITY MODEL OF INTERNATIONAL TRADE: ORIGIN AND MODERN APPROACHES." Scientific Notes of Ostroh Academy National University, "Economics" Series 1, no. 27(55) (2022): 96–103. http://dx.doi.org/10.25264/2311-5149-2022-27(55)-96-103.

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The article examines the historical origins of the formation of gravity modeling and its use in the study of the intensity of international trade. It is emphasized that the driving forces of international exchange and the search for optimal policy ways of its implementation are based on classical theories of international trade. They are based on a liberal approach to deny the need for state restrictions on the free flow of goods between countries in order to regulate the volume, structure and directions of the country's foreign trade. The contribution of outstanding economists to the developm

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Shah Zainal Abidin, Irwan, Muhammad Haseeb, Lee Wen Chiat, and Md Rabiul Islam. "Determinants of Malaysia – BRICS trade linkages: gravity model approach." Investment Management and Financial Innovations 13, no. 2 (2016): 389–98. http://dx.doi.org/10.21511/imfi.13(2-2).2016.14.

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The main objective of this study is to explore the long-run and short-run relationship between trade and other macroeconomic variables of Malaysian and the BRICS countries. To test relationship between trade and other macroeconomic variables, the empirical investigation will be conducted based on the dynamic ordinary least square (DOLS) and fully modify ordinary least square (FMOLS) model for the period 1980-2015. Results of both DOLS and FMOLS show that out of all the variables included in the model distance between Malaysia and BRICS countries and corruption of both side have negative affect

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Okhotnikov, Alexander, Muhammad Imtiaz Subhani, Shatila Khodor, and Denis Ushakov. "Gravity model and Pakistan - China Trade." E3S Web of Conferences 258 (2021): 06036. http://dx.doi.org/10.1051/e3sconf/202125806036.

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Pakistan being an important ally of the war against terror paying huge price of not merely of innocent lives of people but huge monetary losses in many sectors of economy, one lucrative sector is international trade. Pakistan’s export potential has undergone strenuous pressures to perform according to the past performance. There was a need to reveal new export potential and lucrative sectors of economy with recommended policy changes so that new paradigm change in international trade can be initiated. This empirical study carried to meet the objective in which gravity model is used for investi

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Hanif, Muhammad. "Intra OIC-Region Trade: Application of Gravity Model." Journal of Islamic Business and Management (JIBM) 11, no. 02 (2021): 250–66. http://dx.doi.org/10.26501/jibm/2021.1102-002.

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Purpose: This study analyses the international trade among members of the Organisation of Islamic Cooperation (OIC) and documents the significant contributing factors. Methodology: Our sample includes 49 OIC-members (located from Southeast Asia to South America). The extended gravity model of international trade is applied to identify the determinants of intra-OIC region trade on the recent five years data (2014-18), at the time research conducted. Exports are used as proxy for the international trade between a pair of trading partners. Findings: Evidence supports the application of the basic

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Coşkuner, Çağay, and Richard Sogah. "Augmented Gravity Model of Trade with Social Network Analysis." Sustainability 15, no. 19 (2023): 14085. http://dx.doi.org/10.3390/su151914085.

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The 2030 Agenda for Sustainable Development recognizes international trade as an engine for inclusive economic growth and poverty reduction, and an important means to achieve the sustainable development goals (SDGs). Given this role, international trade and global trade networks have received preeminent attention in recent times due to the sharp growth in trade volumes and their contributions to poverty reduction and sustainable development over the years. Despite the growth in global trade volumes and the associated benefits, there are worrying concerns about the unprecedented changes in inte

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Sinaga, Aldon MHP, Masyhuri, Dwidjono Hadi Darwanto, and Sri Widodo. "Employing Gravity Model to Measure International Trade Potential." IOP Conference Series: Materials Science and Engineering 546 (June 26, 2019): 052072. http://dx.doi.org/10.1088/1757-899x/546/5/052072.

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Nazarii, Lypko. "The Gravity Model of Trade: The Case of Central and Eastern Europe." LeXonomica 14, no. 2 (2022): 187–212. https://doi.org/10.18690/lexonomica.14.2.187-212.2022.

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The main patterns of international trade in the countries of Central and Eastern Europe have been analysed in the paper. The gravity model, estimated for a large sample of bilateral trade flows for the analysed states, has been used as a benchmark. The model has been updated according to the modern conditions in the international economy. The emphasis has been made on the analysis of products' trade since the trade of services requires separate modelling. The purpose of the paper was to find the main factors that determine gravity trends in international trade in Central and Eastern Europe

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Larson, Justin, Justin Baker, Gregory Latta, Sara Ohrel, and Christopher Wade. "Modeling International Trade of Forest Products: Application of PPML to a Gravity Model of Trade." Forest Products Journal 68, no. 3 (2018): 303–16. http://dx.doi.org/10.13073/fpj-d-17-00057.

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Abstract To model international trade of forest products we use a gravity model of trade. In modeling trade, we estimate the impact of importer gross domestic product (GDP), exporter GDP, and distance between trading partners using Poisson pseudo-maximum likelihood (PPML). When estimating the log-linearized gravity model (ordinary least squares [OLS]), two issues arise. First, potential bias associated with truncation of all zero-trade observations due to the nonexistence of the natural log of zero. Second, heteroscedasticity can bias results from the log-linearized gravity model because of th

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Tamaş, Anca. "Why should the gravity model be taught in business education?" Proceedings of the International Conference on Business Excellence 14, no. 1 (2020): 422–33. http://dx.doi.org/10.2478/picbe-2020-0040.

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AbstractThe aim of this paper is to critically analyze the papers from the literature mainstream regarding the gravity model and to identify the main findings. The paper highlights the importance of studying the gravity model in the tertiary business education. Introduced by Tinbergen (1962), the gravity model was widely used to analyze the international trade flows in theoretical, as well as empirical studies. Alongside the classical determinants, economy size, market size and geographical distance, other variables which influence the trade flows were found: trade agreements, foreign direct i

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WARD, MICHAEL D., JOHN S. AHLQUIST, and ARTURAS ROZENAS. "Gravity's Rainbow: A dynamic latent space model for the world trade network." Network Science 1, no. 1 (2013): 95–118. http://dx.doi.org/10.1017/nws.2013.1.

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AbstractThe gravity model, long the empirical workhorse for modeling international trade, ignores network dependencies in bilateral trade data, instead assuming that dyadic trade is independent, conditional on a hierarchy of covariates over country, time, and dyad. We argue that there are theoretical as well as empirical reasons to expect network dependencies in international trade. Consequently, standard gravity models are empirically inadequate. We combine a gravity model specification with “latent space” networks to develop a dynamic mixture model for real-valued directed graphs. The model

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Joki, Hossain Mohammed Hye, and Anamul Haque. "The International Trade of Bangladesh: An Empirical Analysis with Gravity Model." Asian Development Policy Review 10, no. 1 (2022): 47–64. http://dx.doi.org/10.55493/5008.v10i1.4438.

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We investigate the foreign trade pattern of Bangladesh using the gravity model of international trade. This work studies 24 years of Bangladesh’s bilateral trade with its 52 major trade partners, from 1995 to 2018. We construct a large panel dataset of 3,168 observations to capture the multilateral resistance terms by accounting for two-way trade flows from each country with the others. We use the PPML fixed effects estimator suggested by Silva and Tenreyro (2006) as the most preferred method for gravity-based analysis. We find mixed results regarding the consistency of Bangladesh’s trade patt

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Abbas, Shujaat, and Abdul Waheed. "Pakistan’s Global Trade Potential: A Gravity Model Approach." Global Business Review 20, no. 6 (2019): 1361–71. http://dx.doi.org/10.1177/0972150919848936.

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The international trade of Pakistan is highly concentrated on a few goods and markets. This study investigates macroeconomic behaviour of trade flow and explores potential trade markets for Pakistan using an augmented gravity model on a large panel of 47 cross-sections from 1980 to 2013. The result of standard gravity variables shows consistent findings with statistically significant t-statistics, whereas augmented variables reveal that relative price has a positive impact with lower price elasticity. The result of binary variables shows that Pakistan’s trade is more with countries having the

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Leitão, Nuno Carlos. "Gravity Model and International Trade: A Survey of the Literature." Administrative Sciences 14, no. 9 (2024): 219. http://dx.doi.org/10.3390/admsci14090219.

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The gravity model, which is applied to international trade, explains the conceptual models of international business. It has been used in various areas of the global economy, such as trade, foreign direct investment, and even the determinants of tourist demand at the level of countries and sectors of economic activity. In terms of the methodology, this study of the gravity model followed the PRISMA requirements and bibliometric analysis (co-occurrence of keywords and network of co-authorship), which were applied to the Scopus database. In terms of the results, economic, geographical distance,

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Šimáková, Jana, and Daniel Stavárek. "An Empirical Sector-Specific Gravity Model for Hungarian International Trade." Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis 63, no. 6 (2015): 2145–50. http://dx.doi.org/10.11118/actaun201563062145.

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This paper contributes to the economic literature on the impact of exchange rate volatility on Hungary’s foreign trade. Basic gravity model shows that trade volume between a pair of countries is an increasing function of their sizes (GDP) and a decreasing function of the distance between them. Additional factors included in extended model are population, dummy for common border and proxy for exchange rate volatility. The measure of exchange rate volatility is estimated by GARCH model. This paper explores relationship between trade and exchange rate uncertainty using quarterly data over the per

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Irma, Baig, and Amin Sajjad. "Effects of Pakistans International Trade Balances on GDP Growth: A Study of Pakistans Foreign Trade." International Journal of Management Sciences and Business Research 11, no. 10 (2022): 80–87. https://doi.org/10.5281/zenodo.7393356.

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<em>In recent years, the debate over international trade balances has exploded. The domestic and external environments significantly influence how the nation trades with the rest of the globe., The government will serve as a facilitator for the sector while it addresses the significant structural problems affecting Pakistan's exports from 2010 to 2021. The economic balance of limiting imports and the economic balance of allowing exports to flourish continue to be two crucial indicators of international trade. The results showed that factors related to the trade balance's exports and im

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Phiri, Gregory, Boyd Mwila Lumbwe, and Chilizani Phiri. "Determining the Predictive Power of the Gravity Model: A Case for Zambia." American Journal of Economics 8, no. 4 (2024): 49–61. http://dx.doi.org/10.47672/aje.2524.

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Purpose: The purpose of this study was to determine the predictive power of the gravity model in explaining trade flows in Zambia. Materials and Methods: The study utilized panel data for the period 1990-2020 for the Zambian economy and its 15 top trading partners based on 2018 trade volumes. The data was collected from the Centre for Prospective Studies and International Studies for International Information (CEPII) Gravity Database. The study employed the gravity equation to predict trade flows in Zambia. Findings: The empirical results show that the gravity model accurately predicts Zambia'

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Bothma, Cornelius, and Michael Colin Cant. "The effectiveness of trade map as tool for measuring the trade potential between South Africa and China." Corporate Ownership and Control 8, no. 1 (2010): 463–73. http://dx.doi.org/10.22495/cocv8i1c4p5.

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Measuring the trade potential between two countries is an important task both for the national trade analyst as well as for the company researcher. Trade potential is commonly measured using the gravity model, an economic construct. The gravity model, however, is not a perfect model and has its detractors. More recently, the International Trade Centre developed Trade Map an online tool for analysing the trade flows between countries. Although not yet widely used, Trade Map appears to be to good alternative or complementary facility that can be used to measure trade potential. The purpose of th

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De Farias, Joedson Jales, and Álvaro Barrantes Hidalgo. "Interstate and international trade of brazilian regions: an analysis using the gravity model." Revista Econômica do Nordeste 43, no. 2 (2016): 247–60. http://dx.doi.org/10.61673/ren.2012.220.

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This paper analyzes the interstate and international trade of Brazilian regions in the period following trade liberalization. To carry out the analysis, the paper uses the gravity model methodology. The estimated trade models show that the border effect is still very significant for the foreign trade in Brazilian regions despite the process of economic openness that took place in the 1990s. The results show that the factors of resistance to the expansion of foreign trade still persist. Using a gravity model which considers the Brazilian states and the countries of the Southern Common Market (M

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Cieślik, Andrzej, Jan Jakub Michałek, and Jerzy Mycielski. "Social Development and International Trade in Central Europe." Equilibrium 7, no. 2 (2012): 7–19. http://dx.doi.org/10.12775/equil.2012.008.

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In this paper we study the impact of social development on international trade in Central and Eastern Europe using the generalized gravity model. Many previous empirical studies which explored the determinants of trade flows, concentrated only on traditional gravity variables, such as the size of trading partners, factor abundance, technology differences or distance. In our study, in addition to the standard set of gravity variables, we examine the role of aggregate social development indicators such as Human Development Index and its components. Our results show that both aggregate and disagg

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Getachew, Magnar Kitila, and Chen Fuzhong. "Multilateral Trade Resistance, International Competitiveness and African International Exports: A Network Perspective." International Journal of Science and Business 5, no. 10 (2021): 111–26. https://doi.org/10.5281/zenodo.5650603.

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Understanding and interpreting trade flows between trading partners/countries requires knowing whether countries are hubs or peripherals in the global trade network. These network statistics have been included in the gravity model in recent empirical works in international trade, to capture the notion of multilateral trade resistance While the network statistics logically captures the third-country effect, the literature, especially in Africa, has mainly focused on bilateral effects between trading partners, neglecting the multilateral nature of trade.  Employing an Augmented gravity mode

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Sethi, Simran. "Do Larger Economies Trade More? Evidence from India." International Journal of Management and Development Studies 12, no. 12 (2023): 11–17. http://dx.doi.org/10.53983/ijmds.v12n12.002.

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International trade contributes significantly to a country’s economic growth at various stages of a nation’s development. Trade promotes competition and results in a more efficient allocation of resources and, hence, higher efficiency. Trade also encourages technological progress, technology transfer across countries, and development of new products, to name a few. This paper has two objectives- 1) To examine various trade theories on how trade impacts an economy’s growth, and 2) To analyse the trade data for India’s leading trading partner countries, and examine consistency of such data with

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Chu, Keqi. "Digital Economy, China International Trade Potential, Industries of BRI countries: Evidence from Stochastic Frontier Gravity Model." Frontiers in Business, Economics and Management 12, no. 2 (2023): 172–78. http://dx.doi.org/10.54097/fbem.v12i2.14875.

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The article investigates the impact of digital trade on China’s trade efficiency, trade potential, and the possible influence factors of China to BRI nations under stochastic frontier gravity methodology framework. In this article, it follows previous studies and employ stochastic frontier gravity model to explore possible influence of digital trade and trade barriers on China’s foreign trade potential at country-level. It evaluates the influence factor of China export potential to BRI countries via the aspect of digital commerce. Moreover, this article enriches the BRI literatures by employin

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Chaney, Thomas. "Distorted Gravity: The Intensive and Extensive Margins of International Trade." American Economic Review 98, no. 4 (2008): 1707–21. http://dx.doi.org/10.1257/aer.98.4.1707.

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By considering a model with identical firms, Krugman (1980) predicts that a higher elasticity of substitution between goods magnifies the impact of trade barriers on trade flows. In this paper, I introduce firm heterogeneity in a simple model of international trade. I prove that the extensive margin and the intensive margin are affected by the elasticity of substitution in exact opposite directions. When the distribution of productivity across firms is Pareto, the predictions of the Krugman model with representative firms are overturned: the impact of trade barriers on trade flows is dampened

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Host, Alen, Helga Pavlić Skender, and Petra Adelajda Zaninović. "Trade Logistics – the Gravity Model Approach." Zbornik radova Ekonomskog fakulteta u Rijeci: časopis za ekonomsku teoriju i praksu/Proceedings of Rijeka Faculty of Economics: Journal of Economics and Business 37, no. 1 (2019): 327–42. http://dx.doi.org/10.18045/zbefri.2019.1.327.

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Sambiri, B. B., N. C. Mutai, and S. Kumari. "Understanding the Republic of Malawi’s trade dynamics: A Bayesian gravity model approach." Review of Business and Economics Studies 12, no. 3 (2024): 28–39. http://dx.doi.org/10.26794/2308-944x-2024-12-3-28-39.

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International trade enables countries to expand their markets, access more products, improve resource allocation, and boost economic growth by leveraging comparative advantage and specialization. The aim of this article is to analyze the primary factors that influence Malawi’s international trade flows. The study is relevant because it examines Malawi’s trade patterns with its main partners, which include surrounding nations and traditional trade allies. The novelty is that, through the analysis, the research offers valuable insights into the primary factors that influence Malawi’s internation

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Thompson, Jada M., Dustin L. Pendell, Amy D. Hagerman, and Kamina K. Johnson. "International Trade Implications of Highly Pathogenic Poultry Disease Events." Agricultural and Resource Economics Review 49, no. 3 (2019): 517–37. http://dx.doi.org/10.1017/age.2019.24.

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Animal disease events can lead to international trade restrictions which can vary in duration, products included, and geographical extent. Accounting for multilateral resistance between trading partners, a general gravity model of trade is estimated with a Hausman-Taylor and a Hausman-Taylor seemingly unrelated estimator to evaluate the trade quantity impact by commodity resulting from highly pathogenic poultry disease events in 24 exporting markets. Commodity specific results show that quantity traded and products demanded during a disease event differ by commodities. Understanding these impa

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Blahun, Ivan S., and Yulian R. Nadvirnianskyi. "The Model of Economic Analysis of International Trade Between Ukraine and the European Union." Business Inform 11, no. 538 (2022): 76–81. http://dx.doi.org/10.32983/2222-4459-2022-11-76-81.

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The equations of gravity have undergone a significant evolution since their initial application in economics. The conception is perceived as originating in physics. However, international trade studies allow to a more thorough analysis of the instances of gravity equations application. The conception of gravity, initially underestimated by economists and devoid of solid theoretical foundations, was rarely used in empirical research. However, at present this conception has become the main instrument of analysis. First of all, this is determined by its empirical utility, ability to take into acc

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Chu, Keqi. "Topic: Digital Economy, China International Trade Potential, Industries of BRI countries: Evidence from Stochastic Frontier Gravity Model." Frontiers in Business, Economics and Management 12, no. 3 (2024): 92–98. http://dx.doi.org/10.54097/inmx98hl.

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The article investigates the impact of digital trade on China’s trade efficiency, trade potential, and the possible influence factors of China to BRI nations under stochastic frontier gravity methodology framework. In this article, it follows previous studies and employ stochastic frontier gravity model to explore possible influence of digital trade and trade barriers on China’s foreign trade potential at country-level. It evaluates the influence factor of China export potential to BRI countries via the aspect of digital commerce. Moreover, this article enriches the BRI literatures by employin

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Bubáková, Petra. "Gravity Model of International Trade, Its Variables, Assumptions, Problems and Applications." Acta Oeconomica Pragensia 21, no. 2 (2013): 3–24. http://dx.doi.org/10.18267/j.aop.396.

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Polyakov, Maksym, and Lawrence Teeter. "Modeling Pulpwood Trade within the United States South." Forest Science 53, no. 3 (2007): 414–25. http://dx.doi.org/10.1093/forestscience/53.3.414.

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Abstract Interregional trade of roundwood products is an important factor of regional roundwood markets. Until now, regional and subregional forest sector models did not account for the spatial aspects of roundwood markets. This article explores ways to model interregional trade of roundwood products. It compares the performance of different specifications of a gravity model (the model widely used in the analysis of international trade) and a fixed gravity coefficient model (common in regional input-output analysis) to forecast pulpwood trade between the states of the United States South. The

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Popovych, Andriy. "Zastosowanie modelu grawitacyjnego do analizy międzynarodowego handlu miodem pszczelim." Zeszyty Naukowe SGGW w Warszawie - Problemy Rolnictwa Światowego 18(33), no. 4 (2018): 395–406. http://dx.doi.org/10.22630/prs.2018.18.4.128.

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The aim of the article is to analyze the characteristics of functioning and to identify trends in the development of the global honey market. To analyze the factors affecting global trade in honey, the gravity model was used, namely its variation for a single product. Statistics on international trade from databases of leading international organizations were used to quantify this model. As a result of econometric analysis of panel data, the determinants of global trade in honey were identified and the use of the gravity model was justified in assessing this market.

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Lev, Vlasenko. "Linguistic distance as a variable of the gravity model for international trade: example of China." Fundamental and applied researches in practice of leading scientific schools 38, no. 2 (2020): 4–9. https://doi.org/10.33531/farplss.2020.2.1.

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Linguistic distance as a variable of the gravity model for international trade: example of China. Fundamental and applied researches in practice of leading scientific schools, 38 (2), 4-9. This article investigates the role of linguistic distance on bilateral trade by using a set of indicators aimed to depict linguistic distance or proximity of China and its major trade partners. For this purpose, the gravity model that uses the linguistic distance as one of the elements of analysis and forecasting of bilateral trade is utilized. To achieve this goal, existing theories of the gravitational mod

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Keller, Wolfgang, and Stephen Ross Yeaple. "The Gravity of Knowledge." American Economic Review 103, no. 4 (2013): 1414–44. http://dx.doi.org/10.1257/aer.103.4.1414.

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We analyze the international operations of multinational firms to measure the spatial barriers to transferring knowledge. We model firms that can transfer bits of knowledge to their foreign affiliates in either embodied (traded intermediates) or disembodied form (direct communication). The model shows how knowledge transfer costs can be inferred from multinationals' operations. We use firm-level data on the trade and sales of US multinationals to confirm the model's predictions. Disembodied knowledge transfer costs not only make the standard multinational firm model consistent with the fact th

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Pomichowski, Piotr, and Maria Parlińska. "ANALYSIS OF POLISH INTERNATIONAL TRADE WITH NEIGHBORING COUNTRIES, USING GRAVITY MODEL." Annals of the Polish Association of Agricultural and Agribusiness Economists XX, no. 5 (2018): 173–78. http://dx.doi.org/10.5604/01.3001.0012.6704.

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The aim of the study was to examine whether there are non-tariff barriers (NTB s) in Poland’s trade with neighboring countries and in what amounts. For this purpose, a gravitational model of international trade was used, in which the parameters of selected variables were estimated in 4 agri-food sectors: agricultural raw materials, dairy products, food, fruit and vegetables, and meat products. The estimation of NTB s was the smallest in all sectors mentioned in Poland’s exports to Slovakia. The largest restrictions except for the dairy sector occur in Poland’s trade with Ukraine. The largest n

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Habib, Kabir, and Ahmad Faizan. "Trade Potential of Afghanistan with European Union: A Gravity Model Approach." Kardan Journal of Economics and Management Sciences (KJEMS) 6, no. 1 (2023): 17–34. https://doi.org/10.31841/KJEMS.2023.133.

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<em>The notion of international trade and its impact on economic growth has been phenomenal. Thus, countries to reap the trade dividends diversify their trade destinations. Against this backdrop, this study investigates the trade potential of Afghanistan with the European Union by applying the gravity model of international trade. The study used panel data for five years, from 2015 to 2019. The gravity model has been further augmented by adding GDP per capita, population, real exchange rate, inflation rate, and openness of the partner country. The co-efficient of the gravity model has been use

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Wu, Zongning, Hongbo Cai, Ruining Zhao, Ying Fan, Zengru Di, and Jiang Zhang. "A Topological Analysis of Trade Distance: Evidence from the Gravity Model and Complex Flow Networks." Sustainability 12, no. 9 (2020): 3511. http://dx.doi.org/10.3390/su12093511.

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As a classical trade model, the gravity model plays an important role in the trade policy-making process. However, the effect of physical distance fails to capture the effects of globalization and even ignores the multilateral resistance of trade. Here, we propose a general model describing the effective distance of trade according to multilateral trade paths information and the structure of the trade flow network. Quantifying effective trade distance aims to identify the hidden resistance information from trade networks data, and then describe trade barriers. The results show that flow distan

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Waugh, Michael E. "International Trade and Income Differences." American Economic Review 100, no. 5 (2010): 2093–124. http://dx.doi.org/10.1257/aer.100.5.2093.

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I develop a novel view of the trade frictions between rich and poor countries by arguing that to reconcile bilateral trade volumes and price data within a standard gravity model, the trade frictions between rich and poor countries must be systematically asymmetric, with poor countries facing higher costs to export relative to rich countries. I provide a method to model these asymmetries and demonstrate the merits of my approach relative to alternatives in the trade literature. I then argue that these trade frictions are quantitatively important to understanding the large differences in standar

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Bakhtiyorjon, Shuxratovich Fayzullaev. "PROSPECTS OF UZBEKISTAN FROM MUTUAL TRADE WITH MIDDLE EAST STATES." World scientific research journal 16, no. 1 (2023): 85–101. https://doi.org/10.5281/zenodo.8061288.

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Abstract: The article explores the prospects of Uzbekistan's mutual trade with Middle East states using the Gravity Model of international trade. The Gravity model  is a statistical model used to predict the flow of trade between countries based on the  size  of  their  economies  and  the  distance  between  them.  The  article  discusses  the  potential opportunities and challenges for Uzbekistan in its trade with the Middle East,  and provides comprehensive and practical suggestions to boost m

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Khan Achakzai, Jahangir. "Unilateral Liberalization versus Regional Integration: The Case of ECO Member Countries." LAHORE JOURNAL OF ECONOMICS 15, no. 1 (2010): 27–44. http://dx.doi.org/10.35536/lje.2010.v15.i1.a2.

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Using an international dataset on bilateral trade for 137 countries in 2005, we estimate a gravity model to address the question of whether intra-Economic Cooperation Organization (ECO) trade is too low and whether the scale of trade at present is accounted for by regional integration or unilateral liberalization. The results of the gravity model confirm that intra-regional trade is lower than predicted by the gravity equation. The results also validates the theory that the present level of trade is attributed to regional agreements rather than unilateral liberalization, suggesting greater sco

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Mehmood, Bilal, Azka Arif Malik, and Rabia Khalid. "ICT Augmented Gravity Model Application: Sector Level Analysis of the Asia-Pacific Region." Revista Digital Mundo Asia Pacífico 10, no. 18 (2021): 43–66. http://dx.doi.org/10.17230/map.v10.i18.03.

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The use of information and communication technologies (ICT) in commerce improves the commercial structure and economic capacity of a country. This study empirically assesses the impact of ICTs on international trade in 36 countries in Asia and the Pacific, at the sectoral level, between 2007 and 2018. The study evaluates whether ICTs improve international trade by hiring the gravity model of international trade and increasing it with the ICT variable. An ICT development indicator (IDI) is formed by joining seven different ICT variables that show ICT infrastructure, use, and skills. Using the P

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Šimáková, Jana, and Daniel Stavárek. "An Empirical Sector-Specific Gravity Model for Hungarian International Trade." Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis 63, no. 6 (2015): 2145–50. http://dx.doi.org/10.11118/201563062145.

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Krisztin, Tamás, and Manfred M. Fischer. "The Gravity Model for International Trade: Specification and Estimation Issues." Spatial Economic Analysis 10, no. 4 (2015): 451–70. http://dx.doi.org/10.1080/17421772.2015.1076575.

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Ismail Metin and Gencay Tepe. "Gravity Model: A Bibliometric Analysis and Detailed Overview." International Journal of Business and Society 22, no. 1 (2021): 365–81. http://dx.doi.org/10.33736/ijbs.3183.2021.

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Originating from Newton’s gravitational theory which was posed in 1687; the concept of gravity equation was primarily used by Tinbergen in the field of international trade analysis in 1962. After Tinbergen, Pöyhönen, Linnemann, Anderson, Santos and Tenreyro, Bergstrand and Egger, Deardorff and also Wooldridge developed the theory of gravity. And gravity model has become progressively well-liked in the academic publications. The aim of this study is to determine the literature belonging to the years between 1980 which is the starting point for “gravity” related studies’ being published on Web o

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Zhang, Yan. "Influence Effect of Internet on the Optimization of China’s International Trade Structure Based on Gravity Model." Mathematical Problems in Engineering 2022 (July 13, 2022): 1–8. http://dx.doi.org/10.1155/2022/4771947.

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The scale and competitiveness of foreign trade are not only an important reflection of a country’s economic strength, status, and influence in the international economy, but also a basic indicator to measure a trading power. At the moment, information technology, embodied by the Internet, is steadily altering the old method of international trade. This research investigates the impact of the Internet on China’s international trade, based on a comprehensive review of the relevant literature. This study firstly analyzes the mechanism of network’s influence on international trade structure and fo

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Ozarnov, Ruslan. "Gravity model of international trade among EAEU, SCO and BRICS countries." Теоретическая и прикладная экономика, no. 4 (April 2020): 14–27. http://dx.doi.org/10.25136/2409-8647.2020.4.33954.

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This article is dedicated to examination of factors influencing the economic and financial cooperation of countries with developing market, namely EAEU, SCO and BRICS, by means of building a gravity model of trade. Special attention is given to affiliation of the countries to former USSR. The established timeframe starts with the crisis for Russia 2014 and continuous until the present. The subject of this research is the economic and financial relations emerged in the process of cooperation of EAEU, SCO and BRICS member-states with developing market. The author examines the factors affecting e

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Balogh, Jeremiás Máté. "Investigating the effect of geographical distances and cultural proximity on the Hungarian wine trade." Society and Economy 37, no. 4 (2015): 513–29. http://dx.doi.org/10.1556/204.2015.37.4.6.

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Wine is a very special product from an economic, cultural, and sociological point of view. Wine culture and wine trade play an important role in Hungary. The effect of cultural and geographical proximity on international trade has already been proven in the international trade literature. The size of bilateral trade flows between any two countries can be approximated by the gravity theory of trade. The gravity model provides empirical evidence of the relationship between the size of the economies, the distances between them, and their trade. This paper seeks to analyse the effect of cultural a

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Melnyk, Tetyana, Nataliya Kalyuzhna, and Kateryna Pugachevska. "A GRAVITY MODEL OF TRADE TURNOVER BETWEEN UKRAINE AND THE EU." Baltic Journal of Economic Studies 4, no. 4 (2018): 217–22. http://dx.doi.org/10.30525/2256-0742/2018-4-4-217-222.

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Determining the conditions for further liberalization and the reality of long-term and effective trade and economic cooperation of Ukraine with the EU countries requires assessing the strength and probability of the influence of institutional factors. The possibility of taking into account the significance of institutional factors in the development of foreign trade relations creates a gravity modelling. Determination of gravitational principles of foreign trade actualizes the problem of developing the gravity model, which takes into account impact of institutional factors, contains the necess

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