Home >  Term: gravity model
gravity model

A model of the flows of bilateral trade based on analogy with the law of gravity in physics: Tij = AYiYj /Dij , where Tij is exports from country i to country j, Yi,Yj are their national incomes, Dij is the distance between them, and A is a constant. Other constants as exponents and other variables are often included. Due independently to Tinbergen (1962) and Pöyhönen (1963).

0 0

Creator

  • Noroc
  •  (Silver) 911 points
  • 100% positive feedback
© 2024 CSOFT International, Ltd.