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Concept
Gravity Model
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Summary
The
gravity model
is a
predictive analytical framework
used primarily in economics and geography to estimate the
trade flow
or
interaction between two entities
, often countries or regions, based on their
economic size
and
distance apart
. It is inspired by
Newton's law of gravitation
, positing that
larger economies
exert greater '
gravitational pull
' and that distance acts as a
frictional force
reducing interaction.
Relevant Degrees
Probability and Statistics 100%
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