The Flow Model of Exports: An Introduction

Jiri Mazurek

MPRA Paper from University Library of Munich, Germany

Abstract: The aim of the paper is to propose a new simple frictionless model of international trade shares as an alternative to standard gravity models. In the proposed model (total) shares of export from a given country depend only on a gross domestic product and a distance of importing countries. The model is examined by a linear regression with corrected heteroscedasticity for the latest export data from Germany and the Czech Republic. Results show that the model is very successful in explaining export shares with coefficients of determinacy 0.75 and 0.98 respectively.

Keywords: export; Czech Republic; Germany; gravity model; international trade (search for similar items in EconPapers)
JEL-codes: C51 F14 F17 (search for similar items in EconPapers)
Date: 2014-01-13
New Economics Papers: this item is included in nep-int
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