Trade Flows in Macromarketing Systems

Abstract

The purpose of this paper is to suggest a simple model of the major transactional flows occurring in an economy in which consumers and producers deal with each other, both directly and indirectly, through a complex set of distribution channel options. The first step in the devel opment of the model requires estimates of an aggregated trade flow matrix for the Australian economy in 1968-69 similar to the matrix prepared by Cox, Goodman, and Fichandler for the U.S. for 1947. Using this trade flow matrix and the corresponding input-output matrix, its use is illustrated by estimating the effect on channel flows of an increase in Australia's mineral exports. The model highlights weaknesses in the data gathered by official statisticians relating to the distributive sector and suggests a conceptual framework that may provide a basis for more detailed collections and their subsequent analyses.