Gravitational Analysis in Regional Science and Spatial Economics: A Vector Gradient Approach to Trade

Abstract

For decades, gravitational analysis has been a key instrument in analyzing spatial flows. Time and again, it has prompted new and challenging research questions. This paper provides a concise overview of the foundation, the conceptualization and empirical relevance of gravitational principles in regional science and spatial economics. Attention is also given to general “social physics” interpretations of gravity in spatial interaction models and to the impact of intangible distance frictions. The main emphasis in the study is placed on the significance of spatial impedance functions and gravity potential analysis. In particular, the paper focuses on cross-border trade and has three main goals: (i) to address the robustness of distance friction parameters related to trade borders, employing, inter alia, quantitative results from meta-analyses on trade models in spatial economics; (ii) to present a promising methodology based on gravity potential and the related gravitational gradient models that include directional intensities of flows; (iii) to test the validity of the latter approach on the basis of a vector gradient analysis of export patterns of the Netherlands. The paper argues that—despite the space-reducing impact of the modern digital technologies—gravitational principles still have an uncontested relevance in an analysis of spatial flows in regional science.