We examine the empirical evidence bearing on whether UK trade is governed by a Classical model or by a Gravity model … Gravity model here differs from the Classical model in assuming imperfect competition and a positive effect of total trade on … productivity. We found that the Classical model passed the test rather easily, and that the Gravity model did so too but at a …

comparative advantage, the other based on recent gravity theories. We have tested them by indirect inference on the time-series of … power. Our findings are that the Gravity version of the world model is rejected strongly for two of these country cases, but …

their resource endowments. The other, the 'gravity' model, assumes products are differentiated by geographical origin, so …. Our findings here are that the classical model fits these facts fairly well in general,while the gravity model is largely …