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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&amp;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&amp;T over time. The results shows that trade complementarity and manufacturing trade complementarity significantly contribute to trade for T&amp;T, which is important when choosing trade partners. This provides incentives for manufacturing which can dampen the effect of the Dutch Disease.

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