<p>Does the <a href="https://en.wikipedia.org/wiki/Gravity_model_of_trade" rel="nofollow noreferrer">gravity model of trade</a> apply equally for goods and services?</p>

<p>Naively it would seem that the more ephemeral services would be less impacted by it?</p>

CC BY-SA 4.0
2019-06-21T15:04:11.610Z
Apply equally in what sense? Are the model parameters the same? Or allowing the parameters to vary, is the variation equally explained in services as in goods?
BKay
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2019-06-21T15:40:36.060Z
Neither (I think). I’d like to know whether there is a quantitative  difference in impact when the model is applied to each.
52d6c6af
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2019-06-21T15:43:25.300Z
What do you mean by impact?
BKay
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2019-06-21T16:26:52.267Z
Effect on bilateral trade flows.
52d6c6af
<international-trade>
Does the gravity model of trade apply equally for goods and services?
52d6c6af
# Does the gravity model of trade apply equally for goods and services?

(Asked by: username_0 on 2019-06-21)

Does the [gravity model of trade](https://en.wikipedia.org/wiki/Gravity_model_of_trade) apply equally for goods and services?

Naively it would seem that the more ephemeral services would be less impacted by it?

**Tags:** international-trade
> **Comments:**
> **username_1**: Apply equally in what sense? Are the model parameters the same? Or allowing the parameters to vary, is the variation equally explained in services as in goods?  
> **username_0**: Neither (I think). I’d like to know whether there is a quantitative  difference in impact when the model is applied to each.  
> **username_1**: What do you mean by impact?  
> **username_0**: Effect on bilateral trade flows.  

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## 0 answers

