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Developments in International Trade Theory and Gravity Modelling

  • Somesh K. Mathur
  • Rahul Arora
  • Sarbjit Singh
  • Amrita Roy
Chapter

Abstract

This chapter discusses advances in international trade theory and gravity modeling with an explanation of the reasons behind gains from trade. The changing pattern of trade over time has also changed the explanation of the emergence of gains from trade, which provides room for new trade theories. Initial theories of trade, known as traditional trade theories, explain the pattern of trade in terms of comparative advantage. But with the passage of time, the emergence of trade in intermediates and services has provided new reasons for trade and hence has led to the advent of new trade theories. This chapter will explain the different reasons behind international trade.

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Copyright information

© The Author(s) 2017

Authors and Affiliations

  • Somesh K. Mathur
    • 1
  • Rahul Arora
    • 2
  • Sarbjit Singh
    • 2
  • Amrita Roy
    • 1
  1. 1.Indian Institute of Technology KanpurKanpurIndia
  2. 2.Consumer Unity & Trust Society (CUTS) InternationalJaipurIndia

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