Page 97 - Azerbaijan State University of Economics

THE JOURNAL OF ECONOMIC SCIENCES: THEORY AND PRACTICE, V.78, # 2, 2021, pp. 89-104

DATA ANALYSIS
Trade-to-GDP ratio
The trade-to-GDP ratio is an indicator of the relative importance of international
trade in the economy of a country. The trade-to-GDP-ratio is the sum of exports and
imports divided by GDP. This indicator measures a country’s “openness” or
“integration” in the world economy. It represents the combined weight of total trade
in its economy, a measure of the degree of dependence of domestic producers on
foreign markets and their trade orientation (for exports) and the degree of reliance of
domestic demand on foreign supply of goods and services (for imports). The trade-
to-GDP-ratio is often called the “trade openness ratio”.

The formula is：
Where Z is trade-to-GDP ratio, X is the total value of exports, and M is the total
value of imports.

Hungary is one of the members of the European Union. In order to analyze the
current economic and trade relations between China and Hungary, it is necessary to
understand the trade dependence index of China and the European Union.

The European Union is the concentrated embodiment of regional economic
integration, with a total of 28 member countries, and has become an indispensable
and important component of the current world economy. From the point of view of
the current economic situation of the European Union, the degree of economic
openness of the European Union is relatively high, and the "Trade-to-GDP ratio" is
the basic index to evaluate the degree of economic openness of an economy.

Table.1: Main data of China trade. Unit :Trillion
2011 2013 2015 2017 2019 2020
IMPORT 1.74 1.95 1.68 1.84 2.08 2.05
EXPORT 1.90 2.21 2.27 2.26 2.49 2.59
GDP 7.57 9.61 11.06 12.24 14.28 14.72
IMPORT/GDP 23.02% 20.30% 15.18% 15.07% 14.57% 13.93%

EXPORT/GDP 25.07% 22.99% 20.55% 18.50% 17.44% 17.60%

RATIO 48.09% 43.29% 35.73% 33.56% 32.01% 31.53%

Source: developed by the authors based on statistical data. (UN comtrade database).

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