The new version of gravity model in explaining bilateral trade. “A comparative study for developed and developing nations”

Muhammad Imtiaz Subhani, Amber Osman and Rabia Khokhar

MPRA Paper from University Library of Munich, Germany

Abstract: World trade has grown rapidly. Several factors are highlighted by literature as the driving forces behind the growth of world trade. Reductions in barriers to trade are one of them. A comprehensive empirical investigation is carried to ascertain the trade reducing and increasing effect of barriers to trade and facilitators to trade. The new version of gravity model is developed in the connections in this study while analyzing the effect of GDP, distance, remittances, FDI, transportation cost, exchange rate, inflation, population, import and export of specifically trading partners on trade flows during bilateral trade. The study revealed that the developed version of gravity model explains the trade flows substantially and vigorously for the nations from developed world than for the nations from developing world.

Keywords: Gravity model; Export; Import; Trade barriers; Trade facilitators (search for similar items in EconPapers)
JEL-codes: O1 O16 (search for similar items in EconPapers)
Date: 2011, Revised 2011
New Economics Papers: this item is included in nep-cwa and nep-int
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Published in EuroEconomica 2.28(2011): pp. 41-50

Downloads: (external link)
https://mpra.ub.uni-muenchen.de/34727/1/MPRA_paper_34727.pdf original version (application/pdf)

Related works:
Journal Article: The new version of gravity model in explaining bilateral trade. “A comparative study for developed and developing nations” (2011)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:34727

Access Statistics for this paper

More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter ().