THE GRAVITY MODEL OF INTERREGIONAL TRADE: CASE OF EASTERN SIBERIA

This paper analysis the gravity model of interregional trade of Irkutsk region the base of statistical data on gross regional products and trade flows between Russian regions. We find that the market size significantly impacts the trade volumes. The elasticity of export on importer region size is approximately equal to one. Moreover, it appears that the distance significantly negatively impacts the trade volumes. The elasticity of export on distance to the importer region is approximately equal to -1,5. We also find that Irkutsk region trade with Eastern regions is significantly (about 11 times) greater. Furthermore, we arrive at the conclusions that the absence of railroad significantly negatively (about 4 times) impacts the trade flows.