- The Oxford Handbook of International Business 2nd edition
- Preface to Second Edition
- Preface to First Edition
- Acknowledgements for Second Edition
- Acknowledgements for First Edition
- Figures
- Box
- Tables
- Contributors
- The History of the Multinational Enterprise
- The Key Literature on IB Activities: 1960–2006
- The Gravity Equation in International Trade
- Strategic Complexity in International Business
- Theories of the Multinational Enterprise
- Location, Competitiveness, and the Multinational Enterprise
- Sovereignty@Bay: Globalization, Multinational Enterprise, and the International Political System
- National Policies and Domestic Politics
- Multinational Enterprises and Public Policy
- Unbundling the Institution‐Based View of International Business Strategy
- Multilateral Institutions and Policies: Implications for Multinational Business Strategy
- Strategy and the Multinational Enterprise
- The Multinational Enterprise as an Organization
- Strategy and Management In MNE Subsidiaries
- Strategic Alliances
- Innovation and Information Technology in the MNE
- Contemporary Research Trends in International Marketing: The 2000s
- Culture and Human Resources Management
- Environmental Policy and International Business
- International Financial Management and Multinational Enterprises
- Taxes, Transfer Pricing, and The Multinational Enterprise
- Japan
- China and International Business
- The Smaller Economies of Pacific Asia and Their Business Systems
- Methodological Contributions in International Business and the Direction of Academic Research Activity
- Political Risk and Country Risk in International Business: Concepts and Measures
- Comparative International Business Research Methods : Pitfalls and Practicalities
- Metrics for International Business Research
- Name Index
- Subject Index
Abstract and Keywords
This article aims to explain trade flows in terms of the gravity equation (GE). The reason for focusing on GE is twofold. The first is that GE, unlike other frameworks, has had great empirical success in explaining bilateral trade flows. For a long time, however, GE was a child without a father in the sense that it was thought to have no theoretical support. Since the late 1970s, this state of affairs has changed radically. Now, the gravity equation has strong theoretical support and can be derived from a variety of models of international trade. The second is that GE can be used to sort out alternative hypotheses of international trade.
Keywords: gravity equation, international trade, bilateral trade flows, international trade models, trade hypotheses, empirical framework
Michele Fratianni, Emeritus Professor, Kelley School of Business, Indiana University and Università Politechnica delle Marche, Dipartimento di Economia, Ancona, Italy.
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- The Oxford Handbook of International Business 2nd edition
- Preface to Second Edition
- Preface to First Edition
- Acknowledgements for Second Edition
- Acknowledgements for First Edition
- Figures
- Box
- Tables
- Contributors
- The History of the Multinational Enterprise
- The Key Literature on IB Activities: 1960–2006
- The Gravity Equation in International Trade
- Strategic Complexity in International Business
- Theories of the Multinational Enterprise
- Location, Competitiveness, and the Multinational Enterprise
- Sovereignty@Bay: Globalization, Multinational Enterprise, and the International Political System
- National Policies and Domestic Politics
- Multinational Enterprises and Public Policy
- Unbundling the Institution‐Based View of International Business Strategy
- Multilateral Institutions and Policies: Implications for Multinational Business Strategy
- Strategy and the Multinational Enterprise
- The Multinational Enterprise as an Organization
- Strategy and Management In MNE Subsidiaries
- Strategic Alliances
- Innovation and Information Technology in the MNE
- Contemporary Research Trends in International Marketing: The 2000s
- Culture and Human Resources Management
- Environmental Policy and International Business
- International Financial Management and Multinational Enterprises
- Taxes, Transfer Pricing, and The Multinational Enterprise
- Japan
- China and International Business
- The Smaller Economies of Pacific Asia and Their Business Systems
- Methodological Contributions in International Business and the Direction of Academic Research Activity
- Political Risk and Country Risk in International Business: Concepts and Measures
- Comparative International Business Research Methods : Pitfalls and Practicalities
- Metrics for International Business Research
- Name Index
- Subject Index