This paper presents an alternative derivation of the gravity equation for foreign trade, which is explicitly based on monopolistic competition in the export markets and which is more general than previously seen in the literature. In contrast with the usual specification, our model allows for...

A standard gravity model was applied to estimate the magnitude of potential trade flows between Pakistan and the nine ECO member countries. The major issue in this analysis is to explore that Intra- ECO trade has great potential for Pakistan and that it got lower share than its potential. The...

Recent literature suggests that product characteristics assert different distance sensitivity on trade flows. But the empirical evidences still find conflicting results. Previous studies have examined the effect of distance on the export decisions across different product groups at the aggregate...

This paper estimates the influence of the service sector’s liberalization on service flows in transition economies and on productivity of the Russian industry that uses these services as intermediate consumption. Empirical analysis of the international statistics shows that service trade...

The paper considers whether Sweden should join the EMU as based on general equilibrium (GE) effects through reduced trade barriers linked to the single cur-rency. We use in this evaluation a gravity model for trade in Europe derived and estimated in the paper, and the estimates of trade barriers...

This article presents, through gravity models and a correct definition of what is understood by lost opportunities, an analysis of aggregate trade flows aimed at identifying China’s effects on Latin America’s trade. The results obtained indicate that it is not possible to talk about lost...

This paper examines the India’s trade flows determinants. A gravity model is applied for the period 1998-2012. We selected the following major trade partners: China PRP, United Arab Emirates, United States, Saudi Arab, Switzerland, Singapore, Germany, Hong Kong, Indonesia, Iraq, Japan,...