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The Gravity Model in International Trade

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  • van Bergeijk,Peter A. G.
  • Brakman,Steven

Abstract

How do borders affect trade? Are cultural and institutional differences important for trade? Is environmental policy relevant to trade? How does one's income or wage relate to the fact that trade partners are nearby or far away? These are just some of the important questions that can be answered using the gravity model of international trade. This model predicts and explains bilateral trade flows in terms of the economic size and distance between trading partners (e.g. states, regions, countries, trading blocs). In recent years, there has been a surge of interest in this model and it is now one of the most widely applied tools in applied international economics. This book traces the history of the gravity model and takes stock of recent methodological and theoretical advances, including new approximations for multilateral trade resistance, insightful analyses of the measurement of economic distance and analyses of foreign direct investment.

Suggested Citation

  • van Bergeijk,Peter A. G. & Brakman,Steven (ed.), 2014. "The Gravity Model in International Trade," Cambridge Books, Cambridge University Press, number 9781107454514, January.
    • Handle: RePEc:cup:cbooks:9781107454514
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    Cited by:

    1. Thi Mai Phuong, Chu & Tu, Thuy Anh, 2014. "On the border effect in the Regional Comprehensive Economic Partnership (RCEP)," Papers 910, World Trade Institute.
    2. Riccardo Fiorentini & Alina Verashchagina, 2017. "Immigration and Trade: The Case Study of Veneto Region in Italy," Working Papers 03/2017, University of Verona, Department of Economics.
    3. Gulamhussen, Mohamed Azzim & Hennart, Jean-François & Pinheiro, Carlos Manuel, 2016. "What drives cross-border M&As in commercial banking?," Journal of Banking & Finance, Elsevier, vol. 72(S), pages 6-18.
    4. Mauro Lanati & Alessandra Venturini, 2017. "The Import of “cultural goods” and emigration: an unexplored relation," RSCAS Working Papers 2017/24, European University Institute.

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