Gravity Estimation Model and Trade Intensity

Pritam Chatterjee

Abstract: In terms of economic development, it makes a difference whether export increases at the extensive (new trade flows) or intensive margin (traditional, well-established trade flows)Global Economic Crisis, starting from US, then Europe, really started to showing its effect on 2008.Not only the GDP declines, but also world trade declines rapidly. This paper tries to explain whether simple Gravity Estimation Model can explain factor responsible for Trade Intensity or not. Gravity Estimation analysis is done for two separate periods-pre crisis and post crisis. Time period is 2003-2012, from these, 2003-2007 is the pre-crisis period and 2008-2012 is the crisis and post crisis period. The analysis is done for Emerging Market Economies as EMEs are fastest growing economy. JEL CLASSIFICATIONS: C1, F1. Keywords: Crisis, Bilateral Trade, Emerging Market Economy, Gravity Model. Title: Gravity Estimation Model and Trade Intensity Author: Pritam Chatterjee International Journal of Management and Commerce Innovations ISSN 2348-7585 (Online) Research Publish Journals

Vol. 4, Issue 2, October 2016 – March 2017

Citation
Share : Facebook Twitter Linked In

Citation
Gravity Estimation Model and Trade Intensity by Pritam Chatterjee