Gravity demand functions, accessibility and regional trade

Abstract

Gordon I. R. (1976) Gravity demand functions, accessibility and regional trade, Reg. Studies 10, 25–37. The paper examines the spatial stability of the gravity model relationship between regional trade flows and distance costs in the light of recent suggestions that the degree of distance deterrence is inversely related to accessibility. A re-analysis of British freight flow data suggests that any such spatial variation is probably attributable to the commodity composition of traffic and is sufficiently limited not to invalidate the use of (slightly modified) measures of economic potential. A broader aim of the paper is to offer an economic interpretation of the gravity and potential concepts within the framework of recent statistical derivations.

Keywords:

• Gravity models
• Regional trade
• Economic potential
• Freight flows
• Distance costs
• Substitution elasticities

Additional information

Notes on contributors

Ian R. Gordon

The author is grateful to Harry W. Richardson and Joan Vipond for comments on an earlier version of this paper and to SSRC for financial support.