International Trade Modeling Indices and Measurement Issues
Trade indices are used to measure different aspects of a country’s participation in world trade. Such indices range from Trade Openness Index (TOI) measuring the degree of openness of a country, to Commodity Concentration Index (CCI) and Revealed Comparative Advantage (RCA) measuring diversity and competitiveness of a country’s export basket. However, each index being a summary measure has its own limitation and specific use. One must, therefore, be extremely careful in drawing policy conclusions from the values of these indices obtained in the context of a given data set at hand.
|Date of creation:||07 Jun 2008|
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- Qureshi, M.S. & Wan, Guanghua, 2008. "Trade Expansion of China and India: Threat or Opportunity," WIDER Working Paper Series 008, World Institute for Development Economic Research (UNU-WIDER).
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