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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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    References listed on IDEAS

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    1. James E. Anderson & Eric van Wincoop, 2003. "Gravity with Gravitas: A Solution to the Border Puzzle," American Economic Review, American Economic Association, vol. 93(1), pages 170-192, March.
    2. Gabriel Felbermayr & Jasmin Gröschl & Marina Steininger, 2022. "Quantifying Brexit: from ex post to ex ante using structural gravity," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 158(2), pages 401-465, May.
    3. Serhan Cevik, 2025. "Long live globalization: geopolitical shocks and international trade," International Economics and Economic Policy, Springer, vol. 22(2), pages 1-20, May.
    4. Luigi Capoani & Gianluca Bortoletto & Samuele Fratini & Violetta Van Veen & Cristoforo Imbesi, 2022. "The Genesis and Evolution of the Blue Banana Region," HISTORY OF ECONOMIC THOUGHT AND POLICY, FrancoAngeli Editore, vol. 2022(2), pages 5-45.
    5. ., 2003. "Introduction: Two Images of Economics," Chapters, in: Modeling Rational Agents, chapter 1, pages 1-40, Edward Elgar Publishing.
    6. 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.
    7. Walter Isard, 1954. "Location Theory and Trade Theory: Short-Run Analysis," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 68(2), pages 305-320.
    8. Luigi Capoani, 2023. "Theory of Commercial Gravitational Fields in Economics: The Case of Europe," Networks and Spatial Economics, Springer, vol. 23(4), pages 845-884, December.
    Full references (including those not matched with items on IDEAS)

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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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