Can Gravity Model Explain BIMSTEC's Trade?

The Gravity Model and Iran's Trade Flows

This article has considered the volume and direction of Iran’s trade using the gravity model. The major issue in this analysis is to explore why Iran over or under-traded with the 76 countries relative to the predicted trade flows of the model. The study attempts to explore the reasons from the respect of both the model itself and Iran’s trade structure. This is done by analysing the performanc...

Can the Trade-off Theory Explain Debt Structure?

We examine the optimal mixture and priority structure of bank and market debt using a trade-off model in which banks have the unique ability to renegotiate outside formal bankruptcy. Flexible bank debt offers a superior trade-off between tax shields and bankruptcy costs. Ease of renegotiation limits bank debt capacity, however. Optimal debt structure hinges upon which party has bargaining power...

Trade Blocks and the Gravity Model:

We apply the gravity model to examine the effects of the Andean Community and Mercosur on both intra-regional and intra-industrial trade in the period 1980-1997. After accounting for size and distance effects, the Andean Community preferential trade agreements had a significant effect on both the differentiated and reference products, in particular capital intensive goods. In contrast, Mercosur...

Trade, Size, and Frictions: the Gravity Model

Gravity Model of Trade and Russian Exports