The gravity model

What does the data say about international trade and distance between countries?

The Gravity Model of International Trade holds that the amount of trade between two economies depends (largely) on two things: the size of the economies and the distance between them.

We have explored what this model says about the importance of distance in international trade, how this has evolved over time, and what the implications might be for the UK’s future trading relations.

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David Armstrong
, PwC United Kingdom
Tel: +44 (0)7713 680266
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