The Gravity Equation and Cost of Trade

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Marginal Revolution University

Marginal Revolution University

Күн бұрын

This video covers the "gravity equation," which explains that if two countries are far apart geographically, the trade between those countries decreases. Natural trading partners tend to be the countries closest to each other, even if neighboring economies are significantly smaller. For instance, Canada and Mexico trade the most with the United States. This video also discusses what contributes to the cost of trade across borders for developed countries - and you may be surprised to find that tariffs present a relatively small barrier to trade in comparison with other barriers in language, currency, information costs, security, and policy.
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Пікірлер: 9
@PhamNguyenVanlqd
@PhamNguyenVanlqd 5 жыл бұрын
can I use a new equation by removing log from the gravity equation?
@ahmedbellankas2549
@ahmedbellankas2549 Жыл бұрын
How we estimate the size of a country's economy,by gdp? Where do we find g? By empirical investigation ?
@TheMaskedSam
@TheMaskedSam 6 жыл бұрын
can you show how the calculations based on gravity model could be done? step by step, i searched in a loooot of sources and none show me fckin hoowwww !!!!!!!! they only show you equations and symbols but never the numbers or what units the number should be . my brain is cracking :(
@louulouu1519
@louulouu1519 3 жыл бұрын
same
@bernhardwagner7671
@bernhardwagner7671 4 жыл бұрын
We will see what will happen after BREXIT.
@louulouu1519
@louulouu1519 3 жыл бұрын
Britain is in pain
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