Applying Gravity Model to Analyse Trade Direction
The application of Newton's law of gravity in explaining international trade proved to be very successful. The popularity of a gravity model for explaining trade flows has been due to the fact that the calculations require affordable data for every economy. The basic elements of the panel gravi...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
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Faculty of Mechanical Engineering in Slavonski Brod, Faculty of Electrical Engineering in Osijek, Faculty of Civil Engineering in Osijek
2020-01-01
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| Series: | Tehnički Vjesnik |
| Subjects: | |
| Online Access: | https://hrcak.srce.hr/file/355778 |
| _version_ | 1797207167278776320 |
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| author | Vladimir Ristanović* Dinko Primorac Goran Kozina |
| author_facet | Vladimir Ristanović* Dinko Primorac Goran Kozina |
| author_sort | Vladimir Ristanović* |
| collection | DOAJ |
| description | The application of Newton's law of gravity in explaining international trade proved to be very successful. The popularity of a gravity model for explaining trade flows has been due to the fact that the calculations require affordable data for every economy. The basic elements of the panel gravity model are mainly GDP, population and distance. This paper analyses Serbia's trade from 2001 to 2018 based on the experience of neighbouring countries of Croatia and Romania, using STATA software. The trade exchange with more distanced EU members is less realized. The country tends to trade much more with its neighbouring EU members, proving the basic assumption of a gravity model. There are exceptions regarding some parts of the trade with developed EU economies, regardless of their distance. These relations will help us to evaluate the trade pattern and direction of Serbian trade in the EU accession process using a gravity model. |
| first_indexed | 2024-04-24T09:18:36Z |
| format | Article |
| id | doaj.art-f7ca5604a1f74a46a93f01259b049047 |
| institution | Directory Open Access Journal |
| issn | 1330-3651 1848-6339 |
| language | English |
| last_indexed | 2024-04-24T09:18:36Z |
| publishDate | 2020-01-01 |
| publisher | Faculty of Mechanical Engineering in Slavonski Brod, Faculty of Electrical Engineering in Osijek, Faculty of Civil Engineering in Osijek |
| record_format | Article |
| series | Tehnički Vjesnik |
| spelling | doaj.art-f7ca5604a1f74a46a93f01259b0490472024-04-15T16:29:14ZengFaculty of Mechanical Engineering in Slavonski Brod, Faculty of Electrical Engineering in Osijek, Faculty of Civil Engineering in OsijekTehnički Vjesnik1330-36511848-63392020-01-012751670167710.17559/TV-20200217101315Applying Gravity Model to Analyse Trade DirectionVladimir Ristanović*0Dinko Primorac1Goran Kozina2Faculty of Business Economics and Entrepreneurship, University of Belgrade, Mitropolita Petra 8, 11000 Belgrade, SerbiaDepartment of Economy, University North, Jurja Križanića 31b, 42000 Varaždin, CroatiaDepartment of Economy, University North, Jurja Križanića 31b, 42000 Varaždin, CroatiaThe application of Newton's law of gravity in explaining international trade proved to be very successful. The popularity of a gravity model for explaining trade flows has been due to the fact that the calculations require affordable data for every economy. The basic elements of the panel gravity model are mainly GDP, population and distance. This paper analyses Serbia's trade from 2001 to 2018 based on the experience of neighbouring countries of Croatia and Romania, using STATA software. The trade exchange with more distanced EU members is less realized. The country tends to trade much more with its neighbouring EU members, proving the basic assumption of a gravity model. There are exceptions regarding some parts of the trade with developed EU economies, regardless of their distance. These relations will help us to evaluate the trade pattern and direction of Serbian trade in the EU accession process using a gravity model.https://hrcak.srce.hr/file/355778European Unionpanel gravity modeltrade |
| spellingShingle | Vladimir Ristanović* Dinko Primorac Goran Kozina Applying Gravity Model to Analyse Trade Direction Tehnički Vjesnik European Union panel gravity model trade |
| title | Applying Gravity Model to Analyse Trade Direction |
| title_full | Applying Gravity Model to Analyse Trade Direction |
| title_fullStr | Applying Gravity Model to Analyse Trade Direction |
| title_full_unstemmed | Applying Gravity Model to Analyse Trade Direction |
| title_short | Applying Gravity Model to Analyse Trade Direction |
| title_sort | applying gravity model to analyse trade direction |
| topic | European Union panel gravity model trade |
| url | https://hrcak.srce.hr/file/355778 |
| work_keys_str_mv | AT vladimirristanovic applyinggravitymodeltoanalysetradedirection AT dinkoprimorac applyinggravitymodeltoanalysetradedirection AT gorankozina applyinggravitymodeltoanalysetradedirection |