Question: N6 Tab = (GDPa, GDPb, Dab). Tab is trade between country A and B. GDPa and GDPb are the gross domestic products for countries A

N6

Tab = (GDPa, GDPb, Dab). Tab is trade between country A and B. GDPa and GDPb are the gross domestic products for countries A and B respectively, and Dab is the distance between the two countries. What are the expected relationships between the variables in the model? Is this a gravity model?

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Economics Questions!