Source: wikibot/gravity-model-of-trade
= Gravity model of trade
{wiki=Gravity_model_of_trade}
The Gravity Model of Trade is an economic theory that explains the bilateral trade flow between two countries based on their economic sizes and distance between them. The model is inspired by Isaac Newton's law of gravitation, which states that the force of attraction between two objects is proportional to their masses and inversely proportional to the square of the distance between them.