gravity model  is bechmark . I think it is possible to expand this model

Dear Gokce

Thanks for your reply. Yes, it is possible to extend it with multiple explanatory variables and dummies but I am looking for another way to analyse trade. Hope someone has that Idea. Let see  

Hi, the Home Potential Market Function could be used for it. You can revises the literature of the New Economic Geography. There are some papers that make distinction between one equation and other.

Gravity  is important, but its role can be different for different types of goods. It is very high for bulky goods, with low value per unit of weight and thus high share of transport cost in total value. You can see this paper:

Article A Land Far Away

Sir Yuri

You have done great work but it seems complex to me. I am new to gravity and econometrics so looking for easy understanding. 

I am using Linear Regression (gravity). In OLS every var is significant but when i take id and year fixed effects most of the variable goes wrong even distance. Do you know how to handle this issue? please 

Refer to International Trade Center's Market Potential and Market Performance Index. I have used them for Indian cotton and am drafting a paper at present on the results. The indices consider several parameters (variables). You might want to have a look.

Dear Ritambhara 

Thank you for your Answer. I hope soon I am able to see your paper. 

How about osmosis? (Out of the top of my head.)