The Gravity Model for Trade Theory

The Gravity Model and Iran's Trade Flows

This article has considered the volume and direction of Iran’s trade using the gravity model. The major issue in this analysis is to explore why Iran over or under-traded with the 76 countries relative to the predicted trade flows of the model. The study attempts to explore the reasons from the respect of both the model itself and Iran’s trade structure. This is done by analysing the performanc...

A Perfect Specialization Model for Gravity Equation in Bilateral Trade based on Production Structure

Although initially originated as a totally empirical relationship to explain the volume of trade between two partners, gravity equation has been the focus of several theoretic models that try to explain it. Specialization models are of great importance in providing a solid theoretic ground for gravity equation in bilateral trade. Some research papers try to improve specialization models by addi...

Trade Blocks and the Gravity Model:

We apply the gravity model to examine the effects of the Andean Community and Mercosur on both intra-regional and intra-industrial trade in the period 1980-1997. After accounting for size and distance effects, the Andean Community preferential trade agreements had a significant effect on both the differentiated and reference products, in particular capital intensive goods. In contrast, Mercosur...

Trade, Size, and Frictions: the Gravity Model

The impact of Economic and Geographic indicators in Trade in OIC Countries (Using Gravity Model)

Present paper is an attempt to estimate the impact of Economic and Geographic indicators in trade among Islamic countries according to a bilateral trade model as Gravity model, and study the relationship between Economy, Geography and Trade in this way. Fixed effect version of the panel data estimation producer with OIC member country data spanning over the 2007–2012. The result of this researc...