Assessment of the Effect of the Location of Vehicles on the Volume of International Trade in Cars

In our world some countries drive on left-hand traffic, while others on right. In accordance with the side of the road there are different steering wheel position. The main aim of this work is to analyze is there a significant influence of hand-side of motor vehicle on the trade value from export country to import country. We used gravitation model to determine the effect of the location of vehicle. Analysis showed that there are positive significant influence of the location of vehicle on the road on the trade value of vehicles between countries. Other factors, which also increase the trade value of vehicles between countries, are production of cars in county-exporter, GDP per capita and population in country-importer. Distance between export and import countries decrease the trade value as with increasing of distance, there is also rise in costs of shipment.