The Degree of Openness to Intra-Regional Trade - Towards Value-Added Based Openness Measures

Ansgar Belke and Wang Lars
Additional contact information
Wang Lars: Dir. oec. Department of Economics, University of Hohenheim, D-70593 Stuttgart, Germany

Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), 2006, vol. 226, issue 2, 115-138

Abstract: This study develops innovative measures of openness towards bilateral trade. The most widely applied openness indices are not able to accurately calculate the degree of trade openness. For example, the intra-regional export ratio which relates the value of exports of an integration area to the gross domestic product, can exceed 100 percent because trade is stated in gross terms, while the gross domestic product is expressed in value-added terms. This implies a negative value of domestic non-tradeables. The actual openness concept corrects the traditional concept by expressing trade in value-added terms instead of gross terms.

Keywords: Degree of openness; openness to intra-regional trade; bilateral trade; value-added approach; input-output analysis (search for similar items in EconPapers)
Date: 2006
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)

Downloads: (external link)
https://doi.org/10.1515/jbnst-2006-0202 (text/html)

Related works:
Working Paper: The Degree of Openness to Intra-Regional Trade - Towards Value-Added Based Openness Measures (2005)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:jns:jbstat:v:226:y:2006:i:2:p:115-138

DOI: 10.1515/jbnst-2006-0202

Access Statistics for this article

Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik) is currently edited by Peter Winker

More articles in Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik) from De Gruyter
Bibliographic data for series maintained by Peter Golla ().