Modeling the International-Trade Network: a gravity approach

@inproceedings{Fagiolo2011ModelingTI,
  title={Modeling the International-Trade Network: a gravity approach},
  author={Giorgio Fagiolo},
  year={2011}
}
This paper investigates whether the gravity model (GM) can explain the statistical properties of the International Trade Network (ITN). We fit data on international-trade flows with a GM specification using alternative fitting techniques and we employ GM estimates to build a weighted predicted ITN, whose topological properties are compared to observed ones. Furthermore, we propose an estimation strategy to predict the binary ITN with a GM. We find that the GM successfully replicates the… CONTINUE READING
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