The Gravity Model for Trade Theory

This article delivers a theoretical overview of the gravity model and some of its main applications. The goal is as well to provide some criticism and to discuss the effectiveness of this widely used model. The model, in fact, not only did not lose its appeal over time but, on the contrary, it cont...

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Bibliographic Details
Main Authors: Giovanna Maria Borges Aguiar, Elena Cossu
Format: Article
Language:English
Published: Corvinus University of Budapest 2019-11-01
Series:Köz-gazdaság
Online Access:http://retp.eu/index.php/retp/article/view/180
Description
Summary:This article delivers a theoretical overview of the gravity model and some of its main applications. The goal is as well to provide some criticism and to discuss the effectiveness of this widely used model. The model, in fact, not only did not lose its appeal over time but, on the contrary, it continued to develop and to become more reliable and relevant. It becomes clear that, although it has some problems and limitations, the gravity model is still a widely used and compelling tool, especially in the trade flow area.   Jelen cikk a gravitációs modellról és annak fő alkalmazásairól nyújt áttekintést. A tanulmány további célja a széleskörben használt modell hatékonyságának megvitatása. A modell nem csak, hogy nem veszített népszerűségéből, hanem megbízhatóbbá és relevánsabbá vált. Világos, hogy a modell korlátai ellenére még mindig széleskörben bevett vizsgálati eszköz, különösen a kereskedelem terén.
ISSN:1788-0696