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We have developed a framework to measure the Sino-Latin America trade potential and its influencing factors by using gravity theory. The objective of the study includes introducing the gravity flow model to measure the bilateral trade flow potential between china and 6-Latin American Countries. The gravity flow model helps to understand the economic challenges that China presents to Latin American’s can be uncovered through understanding the bilateral trade policy of Latin American countries toward China. Results shows that China’s expenditure on imports has continued to increase at a higher rate than proceeds from exports while during 2006, expenditure on imports amounted to US$ 2,557.3 million, which was about US$ 831,000 more of what was spent in 2004. Other imports include telecommunications, medical and pharmaceutical products. Unlike Asia’s increased share of import expenditure, import expenditure share for the African continent significantly reduced from 36.2 percent in 2005 to 25 percent in 2006. Other African trade partners were Republic of South Africa, Egypt, DRC, to name but a few. The study provides a valuable information for policy makers and decision makers.
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In-Text Citation: (Aminata, 2018)
To Cite this Article: Aminata, L. (2018). Sino-Latin America Trade potential and its Influencing Factors. International Journal of Academic Research in Business and Social Sciences, 8(11), 300–314.
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