Question

Over the last few​ decades, East Asian economies have increased their share of world GDP.​ Similarly, intra-East Asian tradelong dashthat ​is, trade among East Asian nations long dash has grown as a share of world trade. More than​ that, East Asian countries do an increasing share of their trade with each other.Using the gravity​ model, explain why East Asian countries do an increasing share of their trade with each other.

Answer 1

Answer: Their GDP becomes larger as their trade volume grows

Explanation:

East Asian trade among themselves since they experienced a tremendous growth when they trade amongst themselves, this increases the effect of their GDP growth as their trade volume increase. The higher their trade, the more it plays na effect on the growth of their GDP. This is the reason why Asian countries trade amongst themselves.