Year: 2023
Type: article
Abstract: This article presents a bibliographic review of the gravitational model in international trade from when it was first associated with Newton's law of universal gravitation. Firstly, I will introduce the concept of gravity in commerce as originally intended by Isard (Q J Econ 68(2):305–320, 1954) in relation to Tinbergen and Tobler’s approaches. Secondly, I will analyse the theoretical roots of international economics according to several authors, including McCallum, Anderson and van Wincoop, Krugman, Tranos, and Nijkamp. Thirdly, attention will be drawn to the evolution of the ideas of the authors mentioned above upon Isard’s initial approach rooted in physics. Furthermore, I will focus on how the tool rooted in physics can be applied or adapted to international trade. Throughout this article, I will try to keep the econophysical nature of this model.
Source: SN Business & Economics
Author: Luigi Capoani
Institution: University of Trieste
Language: English
Topic: Global trade and economics
Domain: Social Sciences
Open Access status: hybrid
Estimated APC paid: $2,190
OpenAlex ID: W4367052376