International Trade

International Trade



International Trade

Hypothesis: Richer and better developed countries show higher degree of engagement in international trade.

International trade has become one of the most important issues in domestic as well as international politics in recent decades. Although a growing number of historically oriented studies have shown that trade has been a salient issue among empires, states, and cities for centuries, it has become such a critical contemporary issue because countries' economies are now, more than ever, open to trade flows. They thereby create complex interdependence, defined as mutual dependence, between national economies. Technological progress has resulted in dramatically falling transportation and communication costs, whereas various liberalization policies have freed the exchange of goods and services from various tariff and nontariff barriers.

As the hypothesis of the study shows that the research is to find out the relationship between the international trade and the progress of the country. We all know that the richer and more developed countries have better chances and instruments to engage them in international trade; they have much more resources and opportunities to play on the front end in the international market. The data set consists of various Asian and Pacific countries for the year 2009 taken from the Asian Development Bank. Different statistical techniques were applied to find out the correlation between the international trade and developed countries, the other section of the study will highlight the key indicators of engagement of developed countries in the international trade. The countries are divided in the regions (1, 2, 3 and 4) depending on their financial conditions.

Table 1.

Exports of Goods & Services as a % of GDP 2008

N

Valid

24

Missing

6

Mean

59,117

Median

44,800

Mode

,2a

Std. Deviation

57,5448

Variance

3311,404

Range

234,1

Minimum

,2

Maximum

234,3

Sum

1418,8

Percentiles

25

21,200

50

44,800

75

75,850

Multiple modes exist. The smallest value is shown

The above table shows the descriptive analysis of the variable (Exports of Goods and Services as a % of GDP for the year 2008, the data set consists of 25 countries on the whole but in the particular variable there is a missing value of Lao PDR. The table shows that average % of GDP in terms of Exports of Goods and Services for the year 2008 is 59,117; the reason behind this high average is that the GDP of Hong Kong and Singapore are much higher than the other countries, if we exclude their GDP % than the results would be much different. The variance of a data set is the arithmetic average of the squared differences between the values and the mean. Again, when we summarize a data set in a frequency distribution, we are approximating the data set by "rounding" each value in a given class to the class mark. Thus, the variance of a frequency distribution is given by

In this case we can see that variance is much greater than it should be. This is all because of the two abnormal values which we have already discussed. The normal picture of the data set is closer to normal distribution.

TABLE 2

Exports of Goods & Services as a % of GDP 2008

GDP per capita at PPP (Purchasing Power Parity) Current International ...