Trade Gravity Models for the Factors Affecting Foreign Trade in the Political-Administrative Regions of Chile

Chile is recognized as a highly centralized country, the literature in general and organizations such as the OECD identify Chile with a strong economic dependence on a few regions, where in addition, the OECD itself points out that this centralization and concentration limits Chile's capacity for increase. The main objective of the following research is to analyze the degree of incidence of macroeconomic, social, territorial and political variables that influence the foreign trade of the political-administrative regions of Chile with the World. Evaluating the impact of trade liberalization policies on the development of productive activity in the political-administrative regions of Chile. Regarding the methodology, a formulation of a commercial gravity model will be carried out applying the analysis methodology of panel data, considering for this the regionalized import and export figures, extracted from the customs databases, comprised between the years 2010 and 2019 and information from different national and foreign data sources published as open sources. Thus, it seeks to obtain a regional econometric analysis instrument that identifies the main variables that influence the flow of regional trade in Chile, and consequently measure the degree of territorial deconcentrating achieved from the international trade of Chile's regions as a percentage.