THE GRAVITY MODEL OF INTERREGIONAL TRADE: CASE OF EASTERN SIBERIA Cover Image

THE GRAVITY MODEL OF INTERREGIONAL TRADE: CASE OF EASTERN SIBERIA
THE GRAVITY MODEL OF INTERREGIONAL TRADE: CASE OF EASTERN SIBERIA

Author(s): Alina Novikova, Alexander Filatov
Subject(s): Economy
Published by: Univerzitni servis s.r.o.
Keywords: gravity model; interregional trade; regression analysis; spatial economics; Russian Federation

Summary/Abstract: This paper analysis the gravity model of interregional trade of Irkutsk region the base of statistical data on gross regional products and trade flows between Russian regions. We find that the market size significantly impacts the trade volumes. The elasticity of export on importer region size is approximately equal to one. Moreover, it appears that the distance significantly negatively impacts the trade volumes. The elasticity of export on distance to the importer region is approximately equal to -1,5. We also find that Irkutsk region trade with Eastern regions is significantly (about 11 times) greater. Furthermore, we arrive at the conclusions that the absence of railroad significantly negatively (about 4 times) impacts the trade flows.

  • Issue Year: 4/2015
  • Issue No: 3
  • Page Range: 39-46
  • Page Count: 7
  • Language: English
Toggle Accessibility Mode