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A Political-Economic Model of U.S. Bilateral Trade
Rebecca M. Summary
The Review of Economics and Statistics
Vol. 71, No. 1 (Feb., 1989), pp. 179-182
Published by: The MIT Press
Stable URL: http://www.jstor.org/stable/1928068
Page Count: 4
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Interrelationships between economics and politics have long been recognized by scholars in the field of international relations. This paper attempts to identify and quantify the factors affecting bilateral trade flows between the United States and other countries by developing a gravity type model. The model includes economic and political variables and is tested using data for sixty-six U.S. trading partners. Results indicate that "pure" economic variables which reflect market forces are not the only factors affecting U.S. bilateral trade. Semi-economic and international political factors are also important.
The Review of Economics and Statistics © 1989 The MIT Press