Trade Complementarity as a Basis for the Natural Trading Partner Hypothesis: A Panel Data Study for Trinidad and Tobago

Roger Hosein, Leera Boodram and George Saridakis

The International Trade Journal, 2023, vol. 37, issue 6, 608-632

Abstract: This article examines trade complementarity as a basis for the natural trading partner hypothesis from a sectoral view of trade for the petroleum-based economy of Trinidad and Tobago (T&T) over the period of 2000 to 2015. Gravity modeling and an Intercountries Trade Force (ITF) model are adopted to determine the nature of sectoral trade complementarities in T&T over time. The results shows that trade complementarity and manufacturing trade complementarity significantly contribute to trade for T&T, which is important when choosing trade partners. This provides incentives for manufacturing which can dampen the effect of the Dutch Disease.

Date: 2023
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DOI: 10.1080/08853908.2021.2003727

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