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Combining Walter Isard’s location, trade, and peace theories using a gravitational field model: a case study on the European market and Brexit

Author

Listed:
  • Luigi Capoani

    (Ca’ Foscari University of Venice)

  • Alessandro Barlese

    (Ca’ Foscari University of Venice)

  • Alexandru Tudorache

    (Ca’ Foscari University of Venice)

Abstract

Within a comprehensive framework influenced by Walter Isard’s economic theories on location and gravitation, we suggest a theoretical development encompassing his key areas of interest: trade, peace economics, and regional science. Commercial appeal, market gravity centers, and beneficial locations for exporting enterprises are influenced by the presence of trade-based comparative advantages. As a result, trade agreements, free trade zones, and market dynamics emerge as key accelerators for national growth. In this context, we introduce the concept of peace and economic theories of conflict, giving a framework for analyzing wars and other variables that contribute to political and social instability, providing an analysis of Brexit. Concurrently, we examine recent spatial interaction models. By extending these principles, we develop a new theory of market conflict that is critical for interpreting the relationship between conflict severity, spatial proximity, and market dynamics within the gravitational field paradigm.

Suggested Citation

  • Luigi Capoani & Alessandro Barlese & Alexandru Tudorache, 2025. "Combining Walter Isard’s location, trade, and peace theories using a gravitational field model: a case study on the European market and Brexit," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 52(2), pages 333-355, May.
    • Handle: RePEc:kap:empiri:v:52:y:2025:i:2:d:10.1007_s10663-024-09638-8
    DOI: 10.1007/s10663-024-09638-8
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    More about this item

    Keywords

    Gravity model of trade; Brexit; Econophysics; Economic network; Location theory; Theory of conflict;
    All these keywords.

    JEL classification:

    • A13 - General Economics and Teaching - - General Economics - - - Relation of Economics to Social Values
    • B41 - Schools of Economic Thought and Methodology - - Economic Methodology - - - Economic Methodology
    • D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances; Revolutions
    • F10 - International Economics - - Trade - - - General
    • F51 - International Economics - - International Relations, National Security, and International Political Economy - - - International Conflicts; Negotiations; Sanctions
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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