The gravity model has long been used for modelling and predicting trade flows. This paper generalises the gravity model allowing for proper representation of local and target country effects and also the business cycle. The new approach is based on a panel data framework (instead of a simple...

Trade in services is a rapidly growing phenomenon. Consequently, the question of individual countries? competitiveness in trade in services is of increasing importance. In this paper we describe patterns of competitiveness in services sectors for EU members over the period 1995 to 2005,...