Abstract
In this article similarities and differences between gravity models of gross trade and gravity models of value-added trade are discussed. Gravity models explaining value-added trade are characterized by the higher determination coefficients than gravity models illustrating gross trade. According to the estimation results, more intensive gross and value-added trade are accompanied by higher exporter’s and importer’s GDP and lower the difference in GDPper capita between trading partners. Additionally, shorter geographic distance, common official language and membership in the same regional trading arrangements are much more important for more intensive gross trade than for value added-trade.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
