Discuss the Selection of Research Variables in Applying Gravity Model to Analyze Factors Affecting Specific Sector

Abstract

Gravity model is an important tool for researchers interested in the impact of trade-related policies. It provides a relatively accurate result for testing and evaluating the trade-impact of various policies. In recent years, the application of the model in research has become a trend in many countries around the world, including Vietnam. Though it is considered an attractive platform for international trade researchers, its use is not without potential pitfalls. The most important thing for the application of this model is the choice of exactly which model to estimate (Sherpherd, 2019). This paper aims to systematize the development process, analyze the nature of the model, and focus on analyzing its applicability in the study of trade flows for a specific sector. Based on that, it gives some comments and evaluation on the selection of research variables in a number of recent studies which apply this model in analyzing factors affecting exports of a specific sector in Vietnam. Finally, it draws some conclusions and recommendations for the application of this model in research.

Keywords: Gravity model, Structural gravity model, Theoretical foundation, Nature

DOI: 10.7176/EJBM/13-10-05

Publication date:May 31^st 2021