Push-pull analysis model of trans-border trade: An overview

Abstract

Trading in goods and services across nation's borders with a strong urge for quick profit without a recourse to its effects on a nations GDP has been in existence for decades. This paper aimed at exploring an overview of the push-pull analysis model of trans-border trade using the basic assumptions of rational choice theory as a fulcrum. Factors that pull (attract) and push (repel) traders were discussed in line with the rational choice theory. The paper concludes that, trans-border trading activities will continue to thrive as long as customs officials at border posts demand and collect bribes from traders; and that, the high incidence of taxes and duties imposed by the government on goods coming into the country through the borders will always encourage the traders to seek alternative methods of crossing their wares thereby circumventing government officials to enrich themselves at the expense of the state.