The Flow Model of Exports: An Introduction

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

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.

• Item Type: MPRA Paper
• Language: English
• Keywords: export; Czech Republic; Germany; gravity model; international trade
• Subjects: C - Mathematical and Quantitative Methods > C5 - Econometric Modeling > C51 - Model Construction and Estimation; F - International Economics > F1 - Trade > F14 - Empirical Studies of Trade; F - International Economics > F1 - Trade > F17 - Trade Forecasting and Simulation

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