Estimation of Foreign Trade Volume Between Turkey and BRICs with Gravity Model

Abstract

This study deals with estimating the volume of foreign trade between Turkey and BRICS countries (Brazil, Russia, India, China and South Africa) with the gravity model. In the estimation models where GDP and population amounts of the countries, which were evaluated in the years between 1992 and 2016, and the distance between countries are included, trade volume is considered as dependent variable. In the analysis, the results of the estimation model, including the population, confirm the hypothesis that gravity is based on the model. The results are meaningful and the coefficients bear the expected marks.

Keywords: Gravity Model, Panel Regression, BRICS, Turkey

DOI: 10.7176/EJBM/11-9-02

Publication date:March 31^st 2019