Analysis of the Foreign Trade in Germany Based on the Assumptions of the Gravity Model of Trade...

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Conclusion

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whereas for the rest of trade relations, the trading partners were always on the federal states’ list of top ten trading partners. The only exception refers to trade between Mecklenburg-Vorpommern and Russia in 2020. All in all, the gravity model of trade can be mostly applied when analysing the German trade structure but needs to be treated with caution. It indicates which country Germany or its federal states are predisposed to trade with, but not in all cases do the indicated countries appear to be the most important ones. From a research perspective, the applicability of the trade model has been examined, with a broader view taken on all federal states and comparisons made between them and the situation on the federal level. Additionally, which was new, a historical factor was considered, i.e., the former Allies and their occupation zones and whether this relationship still has impact on trade 60 years later.


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