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Gravity Model and International Trade: A Survey of the Literature

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  • Nuno Carlos Leitão

    (School of Management and Technology, Santarém Polytechnic University, Complexo Andaluz, Apartado 295, 2001-904 Santarém, Portugal
    Center for Advanced Studies in Management and Economics (CEFAGE), University of Évora, 7000-809 Évora, Portugal
    Center for African and Development Studies, Lisbon University, 1200-781 Lisbon, Portugal)

Abstract

The gravity model, which is applied to international trade, explains the conceptual models of international business. It has been used in various areas of the global economy, such as trade, foreign direct investment, and even the determinants of tourist demand at the level of countries and sectors of economic activity. In terms of the methodology, this study of the gravity model followed the PRISMA requirements and bibliometric analysis (co-occurrence of keywords and network of co-authorship), which were applied to the Scopus database. In terms of the results, economic, geographical distance, and location variables are essential in explaining international trade.

Suggested Citation

  • Nuno Carlos Leitão, 2024. "Gravity Model and International Trade: A Survey of the Literature," Administrative Sciences, MDPI, vol. 14(9), pages 1-16, September.
    • Handle: RePEc:gam:jadmsc:v:14:y:2024:i:9:p:219-:d:1477333
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    References listed on IDEAS

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    1. Kandogan, Yener, 2003. "Intra-industry trade of transition countries: trends and determinants," Emerging Markets Review, Elsevier, vol. 4(3), pages 273-286, September.
    2. Krugman, Paul R., 1979. "Increasing returns, monopolistic competition, and international trade," Journal of International Economics, Elsevier, vol. 9(4), pages 469-479, November.
    3. Horácio C. Faustino & Nuno Carlos Leitão, 2011. "Fragmentation in the automobile manufacturing industry: evidence from Portugal," Journal of Economic Studies, Emerald Group Publishing Limited, vol. 38(3), pages 287-300, August.
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    5. Walter Isard & Merton J. Peck, 1954. "Location Theory and International and Interregional Trade Theory," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 68(1), pages 97-114.
    6. Ngoc Thang Doan & Thanh Ha Le, 2024. "The Effects of Global Value Chain on Export Survival," Foreign Trade Review, , vol. 59(3), pages 389-411, August.
    7. Victor Ginsburgh & Shlomo Weber, 2020. "The Economics of Language," Journal of Economic Literature, American Economic Association, vol. 58(2), pages 348-404, June.
    8. Yener Kandogan, 2003. "Intra-industry Trade of Transition Countries: Trends and Determinants," William Davidson Institute Working Papers Series 2003-566, William Davidson Institute at the University of Michigan.
    9. Krugman, Paul & Venables, Anthony J, 1990. "Integration and the Competitiveness of Peripheral Industry," CEPR Discussion Papers 363, Centre for Economic Policy Research.
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    Cited by:

    1. Alexandru Rusu & Octavian Groza & Nicolae Popa & Anita Denisa Caizer, 2025. "Territorial Context and Spatial Interactions: A Case Study on the Erasmus K1 Mobility Datasets," Geographies, MDPI, vol. 5(4), pages 1-19, October.
    2. Dimitar Zlatinov & Nedko Kosev & Sonia Georgieva, 2026. "Electricity Trade in Southeast Europe: Evidence from Bulgaria and Its Neighboring Interconnected Markets," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 5, pages 131-151.
    3. Souibgui, Moez & Ben Zina, Naceur, 2025. "Globalization and the Border Effect: A Geo-Economic Gravity Model of Trade Between the Maghreb and the European Union," MPRA Paper 127388, University Library of Munich, Germany.

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