Question
N6 Tab = (GDPa, GDPb, Dab). Tab is trade between country A and B. GDPa and GDPb are the gross domestic products for countries A
N6
Tab = (GDPa, GDPb, Dab). Tab is trade between country A and B. GDPa and GDPb are the gross domestic products for countries A and B respectively, and Dab is the distance between the two countries. What are the expected relationships between the variables in the model? Is this a gravity model?
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Macroeconomics A European Perspective
Authors: Olivier Blanchard, Alessia Amighini, Francesco Giavazzi
4th Edition
1292360895, 9781292360898
