What the Gravity Model of Trade Shows about International Trade Flows in Latin America

2008 ◽  
Author(s):  
Fernando Martin-Mayoral ◽  
Grace Jaramillo
Keyword(s):  
Latin America ◽  
International Trade ◽  
Gravity Model ◽  
Trade Flows ◽  
Gravity Model Of Trade ◽  
Trade Shows

Footprint of Export-Related GHG Emissions from Latin America and the Caribbean

2021 ◽  
Author(s):  
Kun Li
Keyword(s):  
Latin America ◽  
International Trade ◽  
Technological Progress ◽  
Ghg Emissions ◽  
Trade Flows ◽  
Total Export ◽  
The Caribbean ◽  
Trade Partners ◽  
Composition Of Trade

To quantify the growth in GHG emissions related to international trade, we build an extensive database for export-related production and transportation GHG emissions covering 189 countries and 10 sectors from 1990 to 2014. We employ this database to quantify the contribution of production and international transportation to total export-related GHG emissions from Latin America and the Caribbean and decompose growth in these to contributions of the increase in the regions trade flows, shifts in the composition of trade partners, changes in the traded product basket, and technological progress.

scholarly journals International trade and endogenous standards: the case of GMO regulations

2012 ◽  
Vol 11 (3) ◽  
pp. 415-437 ◽  
Author(s):  
MAURO VIGANI ◽  
VALENTINA RAIMONDI ◽  
ALESSANDRO OLPER
Keyword(s):  
International Trade ◽  
Gravity Model ◽  
Bilateral Trade ◽  
Composite Index ◽  
Trade Flows ◽  
Agricultural Products ◽  
Approval Process ◽  
Bilateral Trade Flows ◽  
Gmo Regulation ◽  
Bilateral Differences

AbstractThis paper quantifies the effect of GMO regulation on bilateral trade flows of agricultural products. We develop a composite index of GMO regulations and using a gravity model we show that bilateral differences in GMO regulation negatively affect trade flows. This effect is especially driven by labeling, approval process, and traceability. Our results are robust to the endogeneity of GMO standards to trade flows.

scholarly journals EFFECTS OF REGIONALIZED TRADE RESTRICTIONS ON QUANTITY EXPORTED DURING A HIGHLY PATHOGENIC AVIAN INFLUENZA EVENT

2018 ◽  
Vol 50 (2) ◽  
pp. 270-289 ◽  
Author(s):  
JADA M. THOMPSON
Keyword(s):  
International Trade ◽  
Avian Influenza ◽  
Gravity Model ◽  
Highly Pathogenic Avian Influenza ◽  
Trade Restrictions ◽  
Highly Pathogenic ◽  
Pathogenic Avian Influenza ◽  
Gravity Model Of Trade

AbstractFrom December 2014 to June 2015, U.S. poultry was affected by highly pathogenic avian influenza that led to destruction of 48 million birds and losses in international trade. During the event, 45 countries placed trade restrictions on U.S. poultry exports, varying from regionalized to national poultry restrictions. Using a gravity model of trade, the effects on quantity traded is estimated for poultry exports at the aggregated and disaggregated commodity level to understand product flows during an event. Results indicate U.S. poultry exports benefit from countries willing to apply limited trade restrictions, and the trade impact varies across disaggregated commodities.

International Trade of Albania. Gravity Model

2014 ◽  
Vol 2 (1) ◽  
pp. 220 ◽  
Author(s):  
Abdulmenaf Sejdini ◽  
Ilirjana Kraja
Keyword(s):  
International Trade ◽  
Gravity Model ◽  
Free Trade Agreements ◽  
Economic Globalization ◽  
Trade Agreements ◽  
Trade Flows ◽  
Key Factors ◽  
Major Development ◽  
Social And Economic Development ◽  
Technological Developments

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 with the focus on export-imports in our country in relation to the Free Trade Agreements, as these have affected Albania's international trade. Specifically, it offers an application of the Gravity Model of Trade for Albanian case in relation to its 27 export/import countries. The findings from the model application result in stable trade flows for Albania.

Distances Matter

2011 ◽  
Author(s):  
Victor Ginsburgh ◽  
Shlomo Weber
Keyword(s):  
International Trade ◽  
Gravity Model ◽  
Voting Behavior ◽  
Trade Flows ◽  
Universal Gravitation ◽  
Literary Works ◽  
Linguistic Differences ◽  
Frequent Application ◽  
Eurovision Song Contest ◽  
Country Differences

The linguistic, genetic, and cultural distances discussed in Chapter 3 have important applications, and many economists have shown that they matter greatly. This chapter focuses on inter-country differences and their impact on trade, migration, translations, and certain aspects of voting behavior. Most applications of intercountry linguistic differences are based on what is now known as the gravity model, whose name comes from its analogy with Newton's 1687 law of universal gravitation. Section 1 is devoted to the best-known and most frequent application of the gravitational analogy: international trade flows. Section 2 discusses migrational flows. Section 3 analyzes the number of translations of literary works into and from various languages, whereas section 4 is devoted to a description of countries' voting patterns in the annual international Eurovision Song Contest.

Trade Trends Estimates: Latin America and the Caribbean - 2021 Edition 1Q

2021 ◽  
Author(s):  
Paolo Giordano ◽  
Kathia Michalczewsky
Keyword(s):  
Latin America ◽  
International Trade ◽  
Trade Flows ◽  
Development Bank ◽  
The Caribbean ◽  
Trade Sector

This report provides estimates of Latin America and the Caribbeans international trade flows for 2020 and the first quarter of 2021. It was prepared by the Integration and Trade Sector (INT) at the Inter-American Development Bank (IDB), in partnership with its Institute for the Integration of Latin America and the Caribbean (INTAL).

The Political Determinants of International Trade: The Major Powers, 1907–1990

1998 ◽  
Vol 92 (3) ◽  
pp. 649-661 ◽  
Author(s):  
James D. Morrow ◽  
Randolph M. Siverson ◽  
Tressa E. Tabares
Keyword(s):  
International Trade ◽  
Trade Flows ◽  
The Political ◽  
Major Powers ◽  
Independent Variables ◽  
The Third ◽  
Political Determinants ◽  
Common Interests ◽  
Gravity Model Of Trade ◽  
Political Variables

We test three arguments about the effect of international politics on trade flows. The first argument states that trade flows are greater between states with similar interests than those with dissimilar interests, the second that trade flows are greater in democratic dyads than nondemocratic dyads, and the third that trade flows are greater between allies. We examine trade flows between the major powers from 1907 to 1990. This period provides variation on all three independent variables of interest and allows us to separate the three arguments empirically. We estimate a gravity model of trade with the above political variables added. Our results demonstrate that joint democracy and common interests increase trade in a dyad, but alliances generally do not, even when controlling for polarity of the system.

scholarly journals Determining the economic impact of cryptocurrency adoption on international trade from a gravity model framework

2021 ◽  
Author(s):  
Eric R. Chen
Keyword(s):  
International Trade ◽  
Gravity Model ◽  
Global Economy ◽  
Bilateral Trade ◽  
Trade Flows ◽  
Regression Analyses ◽  
Model Framework ◽  
Aggregated Data ◽  
Weak Institutions ◽  
Bilateral Trade Flows

As cryptocurrencies develop and circulate at greater rates, countries have appeared to consider the technology as an adoptable medium of exchange. By expanding the influence of cryptocurrencies through adoption, countries raise its impact on the global economy. This paper is the first to apply an augmented version of the gravity model to examine the effects of global cryptocurrency adoption on international trade. This empirical study involves aggregating datasets on U.S. bilateral trade flows, gravity variable statistics, and the adoption of cryptocurrencies. In application of the gravity model, regression analyses are used on the aggregated data to test the magnitude of cryptocurrencies’ impact on trade. Based on the overall findings, the variables for cryptocurrency adoption produce negative coefficients suggesting a negative correlation between the adoption of cryptocurrencies and international trade. The central tendency in the empirical evidence offers the interpretation that countries with weak institutions to promote trade are more likely to adopt cryptocurrencies resulting in a negative association between cryptocurrency adoption and trade.

scholarly journals Why should the gravity model be taught in business education?

2020 ◽  
Vol 14 (1) ◽  
pp. 422-433
Author(s):  
Anca Tamaş
Keyword(s):  
International Trade ◽  
Gravity Model ◽  
Business Education ◽  
Cultural Distance ◽  
Technological Development ◽  
Empirical Studies ◽  
Relevant Literature ◽  
Trade Flows ◽  
Analysis Tool ◽  
Foreign Direct Investments

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 investments, exchange rate, trade taxes, cultural distance, migration, remoteness, knowledge capital, technological development. There are many controversies regarding the zeroes problem within the model, as well as many controversies on the solutions of the zeroes problem. A meta-analysis and systematic review of the relevant literature in the last 56 years was conducted. From author’s knowledge, this study is the most extended literature review on the gravity model, covering more than 50 years of research. Despite all the theoretical controversies, the gravity model proved to be a robust one, with a great power of explanation in more than 80% of the dynamics and structure of the trade flows. Therefore, the gravity model should be considered a valuable analysis tool in teaching and studying in tertiary business education: international trade, econometrics, statistics, trade policy and so on.

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