APPLICATION OF GRAVITY MODEL FOR IDENTIFICATION OF DETERMINES FOR EXCHANGE BETWEEN SERBIA AND PARTNERS
Keywords:
Econometric Trade Mode, Gravity model, External trade efficiency, Determines for exchange-variables, Serbia.Abstract
This article will try to present the theoretical knowledge and research on the gravity model. It will explain the application of gravity models and try to identify factors that affect bilateral trade. The gravity model is frequently used to analyze the bilateral trade with the mathematic formula. As the factors, will be considered the variables, such as borders, EU affiliation, GDP and distance. And also will estimate the efficiency of the Serbian international trade with the partners.
