Working Paper: NBER ID: w16576
Authors: James E. Anderson
Abstract: The gravity model in economics was until relatively recently an intellectual orphan, unconnected to the rich family of economic theory. This review is a tale of the orphan's reunion with its heritage and the benefits that have flowed from it. Gravity has long been one of the most successful empirical models in economics. Incorporating the theoretical foundations of gravity into recent practice has led to a richer and more accurate estimation and interpretation of the spatial relations described by gravity. Recent developments are reviewed here and suggestions are made for promising future research.
Keywords: gravity model; trade; economic theory
JEL Codes: F10; R1
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| gravity model (R15) | economic interactions across space (R12) |
| integration of theoretical foundations (C90) | richer and more accurate estimations of spatial relations (C49) |
| traditional gravity models (R15) | influence on teaching of international economics (F69) |
| remoteness indexes (R15) | explaining trade frictions (F12) |