Gravity Model in Foreign Trade(Iraqi Dates as a Case Study)
International Journal of Applied Agricultural Sciences
Volume 1, Issue 2, July 2015, Pages: 19-25
Received: May 14, 2015; Accepted: May 31, 2015; Published: Jun. 1, 2015
Views 4689      Downloads 306
Basim Hazim Al-Badri, Dept. of Agricultural Economics, Baghdad University, Baghdad, Iraq
Article Tools
Follow on us
The Gravity Model is considered as one of the important models in foreign trade, because it is used to explain the most important determinants of country exports of it’s exported goods and to determine the competitive state for exports of the country in world market, besides it gives an idea about the most important countries in exporting their goods. The study aims to determine the most important factors affecting the flow of Iraqi dates to world market, and to measure the influence of these factors and to determine suitable model to understand most important determinants of foreign trade of Iraqi dates with most important trading partners. The study proved that per capita of GDP, quantity of commodity produced by country ,quantity of commodity exports from Iraq to global market , export price (FOB) of commodity and equilibrium exchange rate of local currencyversus US$, were the most important factors because these factors formed about (%99) of determinants of flow of Iraqi dates to global market. By analyzing this model with most important trading partners (UAE and Syria), the study found that per capita of GDP representing economic size of the two partners, population in the two partners and the distance between trading capitals with inverse sign were the most important factors.Most of these factors compatible with gravity trade model between states, and these factors determine (%98) and (%58) of changes in flow of Iraqi dates to UAE and Syria respectively.
Gravity, Trading Partners, Foreign Trade, Trading Flow
To cite this article
Basim Hazim Al-Badri, Gravity Model in Foreign Trade(Iraqi Dates as a Case Study), International Journal of Applied Agricultural Sciences. Vol. 1, No. 2, 2015, pp. 19-25. doi: 10.11648/j.ijaas.20150102.11
R.Amin, Z. Hamid and N. Saad, "Does Trade AmongASEAN Members Promote Efficiency?SectorialEvidence from the Gravity Model", International Journal of Humanities and Social Science, Vol. 1,p.p 237- 243,2011.
E. Tafenan, "Explaining German Imports of Olive Oil Evidence from Gravity Model", Paper prepared from presentation at the 12th congers people, Food and Environment, Global Trends and European- Strategies- Gent, Belgium,p.p.23-26.2009.
H.Sandberg,"Caricom Bilateral Trade: A preliminary analysis using the gravity model", Technical Paper series by international of agricultural trade and policy center, p.p. 62-69,2002.
H.El- Nader, A. El- Raimony, & A. Irshaidat,"An Empirical Study of the Determinants of Tourism Exports Flow: Using Gravity Model, the Case of Jordan (1976-2005)", El- Yarmok Researches Journal, Erbid, Vol. 26, p.p. 761-782, 2010.
S. Santos, and T. Silvana, "The log of Gravity", The Review of Economics and Statistics , 88(4) , p.p.641-645,2006.
A.Al- Edary, & M. Al-Shamarie, "Estimate The Gravity Model Of United States Of America And Some Countries For The Period From 1991-2011/ an Econometric Study", International Journal of Humanities and Social Sciences (IJHSS), Vol. 3, p.p.101-116,2014.
J.Johnson,"Determinants of Wheat Trade 1999 – 2008", Master thesis, Department of Agricultural Economics, College of Agriculture, Kansas State University, Manhattan,p.p.113-120,2011.
T. Chaney, "The Gravity Equation in International Trade: An Explanation", University of Chicago, NBER and CEPR. p.2- 9,2011.
H. Hassanin, "Gravity Trade Model: Application on Rice and Orange", Master Dissertation, Dept. of Agricultural Economics, College of Agriculture, Zagazig University,p.p.34-39,2010.
P. Egger, "An econometric view on the estimation of gravity models and the calculation of trade potentials", World Economy J., vol.25, pp.297-312,2002.
Science Publishing Group
1 Rockefeller Plaza,
10th and 11th Floors,
New York, NY 10020
Tel: (001)347-983-5186