On a Gravity Equation of Trade: A Case of Germany and the Czech Republic

Result code in IS VaVaI
<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F47813059%3A19520%2F14%3A%230002630" target="_blank" >RIV/47813059:19520/14:#0002630 - isvavai.cz</a>
Result on the web
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DOI - Digital Object Identifier
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Result language
angličtina
Original language name
On a Gravity Equation of Trade: A Case of Germany and the Czech Republic
Original language description
Since 1960s gravity models or equations (economic analogies of Newtons Law of gravity) of various kinds are used in modeling volumes of international trade with a significant statistical success. These models assume that a volume of a bilateral trade ispositively proportional to sizes of trading economies and negatively proportional to their distance. The aim of the paper is to evaluate exports from Germany (the 3rd world exporter) and the Czech Republic (small and open post-transition economy used fora comparison) to their international partners via frictionless aggregate gravity equation with the use of the latest (2012) export data. Results of linear regression with corrected heteroscedasticity (for both countries separately) indicate that the model predicts exports successfully with adjusted determinacy coefficients around 0.75 (GER) and 0.98 (CZE) respectively. Also, coefficients associated with the gross domestic product (0.60 and 0.65) and distance between countrie s (1.24 and
Czech name
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Czech description
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Publication year
2014
Confidentiality
S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Article name in the collection
Proceedings of Mathematical Methods in Economics 2014
ISBN
978-80-244-4209-9
ISSN
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e-ISSN
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Number of pages
6
Pages from-to
631-636
Publisher name
Palacký University, Olomouc, Křížovského 8, 771 47 Olomouc, www.vydavatelstvi.upol.cz
Place of publication
Olomouc
Event location
Olomouc
Event date
Sep 10, 2014
Type of event by nationality
EUR - Evropská akce
UT code for WoS article
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