massimiliano di pace1 international trade statistics trade is a basic condition for economic...

Massimiliano Di Pace 1

INTERNATIONAL TRADE STATISTICS

Trade is a basic condition for economic development

Trade spurs specialisation, allowing countries to focus on their products, having the possibility to import goods difficult to produce (i.e. lack of raw materials, of

experienced workers)



Liberal trade policies, that allow

goods and services flow unrestricted, sharpen competition, motivate innovation and breed

success



In fact, data show a definite statistical link between freer trade and economic growth

Growth of world GDP is associated with an even higher growth in international trade

Economics tells us that we can benefit when goods and services are traded



The liberalisation of trade has been promoted by the establishing of free trade areas

Having the possibility to export easily in countries members of the same free trade area,

it becomes easier even to export elesewhere

Nowadays there are more than a dozen of free areas



The flows of merchandise is relevant not only among countries of the same area or of the

same continent, but also between continents and free trade areas



The ratio of exports and imports of goods and commercial services to GDP is often used to indicate

the openness of an economy

However, results should not be interpreted as a trade policy indicator (i.e. Usa shows a relatively low ratio despite its openness to trade, as reflected by its low

tariffs)

Larger economies tend to show a relatively small ratio



Eu plays an important role in world trade

massimiliano di pace1 international trade statistics trade is a basic condition for economic...

Documents

freer trade

trade policy indicator

low ratio

commercial services

imports of goods

countries members

goods difficult

international tradeeconomics