Munich Personal RePEc Archive

The Flow Model of Exports: An Introduction

Mazurek, Jiri (2014): The Flow Model of Exports: An Introduction.

[img]
Preview
PDF
MPRA_paper_52920.pdf

Download (63kB) | Preview

Abstract

The aim of the paper is to propose a new simple frictionless model of international trade shares as an alternative to standard gravity models. In the proposed model (total) shares of export from a given country depend only on a gross domestic product and a distance of importing countries. The model is examined by a linear regression with corrected heteroscedasticity for the latest export data from Germany and the Czech Republic. Results show that the model is very successful in explaining export shares with coefficients of determinacy 0.75 and 0.98 respectively.

UB_LMU-Logo
MPRA is a RePEc service hosted by
the Munich University Library in Germany.