Gravity Model
Version 1.0.0 · Updated 2026-07-30
CORE DEFINITION
A trade model that borrows from the law of gravity in physics, stating that the trade volume between two countries is proportional to their economic sizes and inversely proportional to the distance between them. The larger the GDP and the closer the distance, the greater the trade volume.
SCAFFOLDING EFFECT
Reduce cognitive load
Trade flow prediction. It provides a quantitative tool for predicting bilateral trade potential. In market entry decisions, it helps assess the possible scale of trade with different countries and identify the most promising markets.
Anchor fast decisions
The gravity model draws on Newton's law of gravity, assuming that the interaction volume (trade, people flow, information) between two places is proportional to the product of their sizes and inversely proportional to the distance (resistance). It is a classic empirical model of spatial interaction.
MINIMUM ACTION
In progress 0/4Practice this model in one real situation:
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Source support: Explicit
- zh.wikipedia.orghttps://zh.wikipedia.org/wiki/%E5%BC%95%E5%8A%9B%E6%A8%A1%E5%9E%8Bverified
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