Skip to content
Robert Schuman Centre for Advanced Studies - European University Institute

The gravity model of international trade | Sonali Chowdhry

Max Weber Fellow Sonali Chowdhry explains the gravity model in economics, which has become the benchmark method used for evaluating the impact of various policies on trade flows between countries.

10 January 2023 | Video

In this Schuman Short, Max Weber Fellow Sonali Chowdhry presents an analogue to Newton's famous Law of Universal Gravitation in economics. She points out how this framework can be used to explain trade flows:

"Subsequent research has greatly expanded the model, showing for instance that bilateral trade between countries is higher when they share a border, speak a common language, have similar cultural and legal institutions, and are joint members of a customs union or the World Trade Organisation."

Check out this paper that uses the gravity model to examine the impact of sanctions. 

Watch more Schuman Shorts on our YouTube channel.

Last update: 10 January 2023

Go back to top of the page