Faculty of Economics and Business Administration (FEBA) is pleased to host a lecture on "Gravity model of Trade" by Prof. Yotov on June 1.

June 1, Thursday, 4 - 7 p.m., Hall 520/FEBA

Тhe gravity model of trade is a ''celebrity'’, due to its intuitive appeal, solid theoretical foundations and remarkable empirical success. It is the workhorse model for analysis of trade flows, but its applications extend to FDI, migration, and other bilateral flows.

The objective of this lecture is to trace the evolution of the gravity equation from an a-theoretical application to an estimating computable general equilibrium (E-CGE) model, which can be nested in more complex frameworks.

Some misconceptions about the gravity model will be addressed. A summary of the current best practices for gravity estimations will be included, as well as a highlight of some properties that have made gravity so successful.

Prof. Yotov will also discuss many applications to various policies, e.g., EU integration, free trade agreements, sanctions, WTO membership, etc.

Prof. Yotov works at the School of Economics of the LeBow College of Business at Drexel University (Philadelphia, USA) and at the Center for International Economics of the ifo Institute (University of Munich, Germany).