The Role of Non-Market Factors in International Trade: A Case of Southern Africa
Mikhail Grachev, Mariya Bobina
This study examines the impacts of non-market factors on international trade in four regionally clustered African countries (Namibia, South Africa, Zambia, and Zimbabwe). It applies the concept of cross-national distance from international business and incorporates statistical and empirically generated data into the augmented gravity models of international trade to predict the impact of those non-market factors. The study reveals negative effects of geographic distance and positive or mixed cultural distance effects in these countries’ foreign trade flows. This paper also suggests useful implications to business scholars and practitioners.