Field Detail
Theme Population and Development
Code PD-ECD-1.4
Sub-theme Economic Development
Name Total Trade/GDP ratio (Total imports + Total exports / GDP in current prices (all at the same year)
Definition Measures the level of External Trade. The Trade-to-GDP-ratio is also known as the trade openness ratio. It shows the significance of international trade to a country's economy.
Calculation/Formula "Total Trade/GDP current (market) ratio (total of exports + total imports, divided by the gross domestic product at current prices)."
Unit of Measure Ratio
Limitations The ratio is not a perfect measure of trade openness i.e. trade flows are measured in terms of gross output (including the value of intermediate goods) whilst GDP is expressed in terms of value-added and also because GDP includes services, so trade in goods and services should be used in the numerator.
Purpose/Rationale Assessment of how Pacific Countries are trading with the outside world. The higher ratio means that the countries are open to trade. Trade in sum of exports and imports. (Countries with a high ratio are more economically sensitive to changes in the level of global trade than countries with a low ratio since they are more open to trade).
Policy Linkages Pacific Plan
Preferred Data Sources Annual Trade Statistics (National Customs/ Statistics Offices' Trade statistics reports).
Primary Data Collection System National Administrative Records - National accounts, government budgets and plans
Economic Tag GDP/Trade
Frequency of Data Collection Annual
SPC Responsibility - Data Management SDP
SPC Programme SDP
Numerator The sum total of exports and imports
Denominator GDP
Unit $