THE EFFECTIVENESS OF TRADE MAP AS TOOL FOR MEASURING THE TRADE POTENTIAL BETWEEN SOUTH AFRICA AND CHINA

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Abstract

Measuring the trade potential between two countries is an important task both for the national trade analyst as well as for the company researcher. Trade potential is commonly measured using the gravity model, an economic construct. The gravity model, however, is not a perfect model and has its detractors. More recently, the International Trade Centre developed Trade Map an online tool for analysing the trade flows between countries. Although not yet widely used, Trade Map appears to be to good alternative or complementary facility that can be used to measure trade potential. The purpose of this article is to report on the evaluation of Trade Map as a tool for measuring trade potential. In so doing, Trade Map was used to analyse the trade potential between South Africa and China. It was found that Trade Map can provide the international trade researcher with a rich width and depth of information on the trade potential between two countries. It is suggest that Trade Map should be used together with the gravity model to create a more complete analysis of trade potential

Keywords: Trade Potential, Trademap, Gravity Model, Trade Analysis

How to cite this paper: Bothma, C. H., & Cant, M. C. (2010). The effectiveness of trade map as tool for measuring the trade potential between South Africa and China. Corporate Ownership & Control, 8(1-4), 463-473. https://doi.org/10.22495/cocv8i1c4p5