DOIONLINE

DOIONLINE NO - IJMAS-IRAJ-DOIONLINE-18128

Publish In
International Journal of Management and Applied Science (IJMAS)-IJMAS
Journal Home
Volume Issue
Issue
Volume-7,Issue-8  ( Aug, 2021 )
Paper Title
The Internet’s Impact on Trade – An Analysis Applying the Gravity Theory
Author Name
Dena Bateh
Affilition
New York University, New York School of Management & Technology, Excelsior College
Pages
19-21
Abstract
The gravity model of international trade analyzes synergistic trade flows based on the economic size and distance between two parts. The model suggests that trade tends to fall with distance due to geographical distance. This paper analyzes the internet's impact on the geographical distance of the gravity model. Firstly, it briefly describes the gravity model focusing on the importance of geographical proximity. Secondly, it illustrates the introduction of the internet and changes that occurred by it specifically targeting intangible services developed through the introduction of the internet. Thirdly, it analyzes the internet's impact on the distance advantages with historical trade data. Lastly, this paper forecasts how the model will change due to an increasing information technology dominance economy. Keywords - Gravity Theory, Dominance Economy, Distance Advantages
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