Analysis of foreign trade with the gravity model among the OECD countries and Turkey

Foreign trade has emerged as a preferred economic relationship in the international arena. The surplus and diversity of the needs have led to the formation of a change-touch relationship with each other. Countries trade with each other for various reasons. Therefore, foreign trade has an importantplace especially in developed countries in terms of their contribution to increase the productivity of industries, advance their technologies and activate their gains among sectors. The most important factor affecting foreign trade is the distance between countries. In this context, the main subject of the study is the gravitational model that relates the distance between countries and measures the impact of foreign trade and has recently been used frequently in empirical studies. The gravitational model is an empirically successful model of foreign trade flows and its usage towards the present is becoming widespread. The gravitational model, which dates back to the second half of the 17 thcentury, is based on Sir Isaac Newton's Law of Gravity. In this study, biletarel trade among the OECD countries and Turkey 1996-2017 period have been analyzed in detail through the gravity model using panel data methods. In the study, real GDP, population, real effective exchange rate, distance variables as well as the dummy variable has used EU membership. According to the empiricalanalysis; real GDP and real exchange ratevariables have a statistically significant effect on trade volume and Turkey's foreign trade and the influence of the variables determined from the statement and concluded that the population variable is meaningless.