If sectoral trade flows obey structural gravity, countries' bilateral trade imbalances are the result of macro trade imbalances, “triangular trade”, or pairwise asymmetric trade barriers. Using data ...

Beata K. Smarzynska, Does Relative Location Matter for Bilateral Trade Flows? An Extension of the Gravity Model, Journal of Economic Integration, Vol. 16, No. 3 (September 2001), pp. 379-398 ...

Despite the gravity equations' empirical successes in "explaining" trade flows, the model's predictive potential has been inhibited by an absence of strong theoretical foundations. A general ...

Soon after that, trade flow plummeted. “When the tariffs hit a certain level, it effectively shuts the border for the flow of the goods,” Mr. Kilpatrick said.