Open AccessThe gravity model of trade
Author(s) -
Saleh Shahriar,
Qian Lu,
Sokvibol Kea,
Nazir Muhammad Abdullahi
Publication year - 2019
Publication title -
review of innovation and competitiveness
Language(s) - English
Resource type - Journals
eISSN - 1849-8795
pISSN - 1849-9015
DOI - 10.32728/ric.2019.51/2
Subject(s) - gravity model of trade , trace (psycholinguistics) , originality , identification (biology) , computer science , economics , management science , macroeconomics , sociology , social science , qualitative research , linguistics , philosophy , botany , biology
Purpose. The purpose of this study is to trace the theoretical developments of the gravity model of trade. The key question is: what are the dominant features of the development of the gravity trade model?Methodology. This research is conducted by employing a number of methodsthat include the historical, descriptive and analytical methods. The main contribution of this paper is to trace the historical and theoretical development phases of the gravity model.Findings. This study is a novel attempt in terms of the identification of the four distinctive phases of the development of the gravity model. This work would, therefore, expand the existing literature on the gravity model. We argue that the development of the gravity model is theoutcome of many research efforts. A large body of literature has given the model a solid theoretical foundation. But there is no consensus about the proper econometric estimation methods of the model. The gravity model is significant both historically and analytically. It is auseful tool for the analysis of international trade. It has become a popular research device used by the researchers and policy makers aroundthe world. The gravity is regarded as one of the most successful modelsin the literature of international economics.Originality. The original contributions of this paper lie in streamlining the consistent historical development of the gravity model over a longer period of time-frame, ranging from 1885 to 2018.Limitations and Implications. This work is theoretical aspects of the trade gravity model. Future researchers could overcome the limitations by combining the theoretical and empirical studies in a paper. This paper can help the future researchers in dealing with the broad body of literature of gravity model.Acknowledement. This study was supported by the National Natural ScienceFoundation of China (grants No.71673223 & 71473197), and a PhD scholarship from the China Scholarship Council (CSC). The first author would like to thank the CSC for the financial support. He also acknowledges the invaluable research advice and guidance receivedfrom Dr. Yoto V. Yotov, professor at the School of Economics of the Lebow College of Business at Drexel University, Philadelphia, USA. The authors are highly grateful to the anonymous reviewers, managing editor,and the editor-in chief for their kind help and critical commentson the earlier drafts of the paper. However, the authors are responsiblefor the contents and limitations of the study. They declared no conflict of interests.