The Impact of Distance on Trade in the Era of Globalization

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This study focuses on the role of distance and the evolution of its effects on international trade. The paper employs the gravity model of trade to explore the complex interactions among Gross Domestic Product (GDP), population size, common borders, cultural factors, technological differences, globalization, and trade. As economies become increasingly globalized and interdependent, understanding how these variables affect the shipment of goods is crucial for formulating effective trade policies and economic strategies. This research utilizes a quantitative approach by conducting regression analyses through Stata with a structural gravity model to systematically quantify the impact of these factors on international trade flows. It contributes to understanding the intricate mechanisms of global trade and provides insights for policymakers to optimize international trade strategies in today's globalized economy.

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Globalization, Gravity model
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