Package {tradeIndices}

tradeIndices: International Trade Indicators

Description

Dependency-light functions for trade intensity, openness, concentration, diversification, similarity, complementarity, revealed comparative advantage, and intra-industry trade.

Details

The package accepts user-supplied trade values and performs no automatic data download. See vignette("trade-indicators", package = "tradeIndices") for a worked agricultural-trade example.

Author(s)

Chiranjit Mazumder majumder.chira@icar.org.in and Renjini V. R.

See Also

trade_openness, trade_intensity, trade_diversification

Grubel-Lloyd Intra-Industry Trade Index

Description

Calculates the Grubel-Lloyd index for individual products or an aggregate weighted across products.

Usage

grubel_lloyd(
  exports,
  imports,
  aggregate = FALSE,
  scale = 100,
  na.rm = FALSE
)

Arguments

Details

The product-level index is

scale [1 - |X_k-M_k|/(X_k+M_k)].

The aggregate form is

scale [1 - \sum_k |X_k-M_k|/\sum_k(X_k+M_k)].

Value

A numeric vector for product-level calculations or one numeric value for the aggregate index. Categories with zero exports and imports return NA_real_ at product level.

References

Grubel, H. G., and Lloyd, P. J. (1975). Intra-Industry Trade: The Theory and Measurement of International Trade in Differentiated Products. Macmillan. ISBN 978-0-333-17210-0.

Examples

exports <- c(rice = 40, wheat = 25, tea = 30)
imports <- c(rice = 10, wheat = 20, tea = 28)
grubel_lloyd(exports, imports)
grubel_lloyd(exports, imports, aggregate = TRUE)

Balassa Revealed Comparative Advantage

Description

Calculates revealed comparative advantage as the reporter's product export share divided by the corresponding world product export share.

Usage

rca_balassa(
  country_product_exports,
  country_total_exports,
  world_product_exports,
  world_total_exports
)

Arguments

Details

The Balassa index is

(X_{ik}/X_i)/(X_{wk}/X_w).

When world exports of a product are zero, the corresponding result is missing.

Value

A numeric vector. Values greater than one indicate revealed comparative advantage.

References

Balassa, B. (1965). Trade liberalisation and revealed comparative advantage. The Manchester School, 33(2), 99–123. doi:10.1111/j.1467-9957.1965.tb00050.x.

Examples

rca_balassa(
  country_product_exports = c(40, 20, 10),
  country_total_exports = 100,
  world_product_exports = c(300, 500, 200),
  world_total_exports = 5000
)

Trade Concentration and Diversification

Description

Calculates concentration or diversification from trade values distributed across products or trading partners.

Usage

trade_concentration(
  x,
  method = c("hhi", "normalized_hhi"),
  scale = 1,
  na.rm = FALSE
)

trade_diversification(
  x,
  method = c(
    "one_minus_hhi",
    "normalized_hhi",
    "shannon",
    "effective_number"
  ),
  na.rm = FALSE
)

Arguments

Details

Let p_k denote the trade share of category k and n the number of included categories. The HHI is \sum p_k^2. Normalized HHI is

(HHI - 1/n)/(1 - 1/n).

The diversification alternatives are one minus HHI, one minus normalized HHI, normalized Shannon entropy, and the effective number of categories \exp(-\sum p_k \log p_k). The first three diversification measures lie between zero and one. Effective number lies between one and n.

For comparisons across observations, use a consistent product or partner universe because the normalized measures depend on n.

Value

One numeric value. NA_real_ is returned when total trade is zero or when missing values are present and na.rm = FALSE.

References

World Bank (2010). Trade Indicators. https://wits.worldbank.org/wits/wits/witshelp/Content/Utilities/e1.trade_indicators.htm.

Examples

x <- c(rice = 45, wheat = 25, tea = 20, spices = 10)
trade_concentration(x)
trade_concentration(x, scale = 10000)
trade_diversification(x)
trade_diversification(x, method = "shannon")
trade_diversification(x, method = "effective_number")

Structural Trade Indices

Description

Compares two product or partner compositions using shares calculated from non-negative trade values.

Usage

trade_diversification_index(
  country_exports,
  benchmark_exports,
  na.rm = FALSE
)

export_similarity(exports_a, exports_b, scale = 100, na.rm = FALSE)

trade_complementarity(
  country_exports,
  partner_imports,
  scale = 100,
  na.rm = FALSE
)

Arguments

Details

The structural trade-diversification index is

0.5 \sum_k |p_{ik} - p_{bk}|.

Zero indicates identical structures and one indicates no overlap. It is a dissimilarity-from-benchmark measure and should not be interpreted as an evenness measure.

Export similarity and trade complementarity use the complementary form

scale (1 - 0.5 \sum_k |p_{1k} - p_{2k}|).

If both inputs are named, categories are aligned by name. If one input is named, both must be named.

Value

One numeric value, or NA_real_ when a composition has zero total trade or contains missing values and na.rm = FALSE.

References

World Bank (2010). Trade Indicators. https://wits.worldbank.org/wits/wits/witshelp/Content/Utilities/e1.trade_indicators.htm.

Examples

country <- c(rice = 45, wheat = 25, tea = 20, spices = 10)
world <- c(spices = 30, tea = 15, wheat = 35, rice = 20)

trade_diversification_index(country, world)
export_similarity(country, world)
trade_complementarity(country, world)

Bilateral Trade Intensity

Description

Calculates bilateral export or import intensity relative to a partner's share in world trade.

Usage

trade_intensity(
  bilateral_exports,
  reporter_exports,
  world_exports_to_partner,
  world_exports,
  adjustment = c("none", "exclude_reporter")
)

import_intensity(
  bilateral_imports,
  reporter_imports,
  world_imports_from_partner,
  world_imports,
  adjustment = c("none", "exclude_reporter")
)

Arguments

Details

The conventional export-intensity index is

(X_{ij}/X_i)/(M_j/M_w).

The import-intensity index is

(M_{ij}/M_i)/(X_j/X_w).

With adjustment = "exclude_reporter", the bilateral flow and reporter total are excluded from the reference partner and world totals, respectively.

Partner-reported imports may be used as mirror data for world exports to the partner, but differences in valuation, timing, and reporting can cause the two series to differ.

Value

A numeric vector. A value greater than one indicates trade that is more intensive than the partner's reference share in world trade.

References

World Bank (2010). Trade Indicators. https://wits.worldbank.org/wits/wits/witshelp/Content/Utilities/e1.trade_indicators.htm.

World Trade Organization (2012). A Practical Guide to Trade Policy Analysis. ISBN 978-92-870-3812-8.

Examples

trade_intensity(
  bilateral_exports = 25,
  reporter_exports = 200,
  world_exports_to_partner = 400,
  world_exports = 5000
)

import_intensity(
  bilateral_imports = 18,
  reporter_imports = 160,
  world_imports_from_partner = 300,
  world_imports = 4800
)

Trade Openness

Description

Calculates exports plus imports as a share of gross domestic product.

Usage

trade_openness(exports, imports, gdp, scale = 100)

Arguments

Details

The calculation is scale (X + M) / GDP. Missing inputs produce missing outputs. Values are vectorized, and scalar inputs are recycled to the common input length.

Value

A numeric vector of trade-openness values.

References

World Bank (2026). Trade (percentage of GDP). https://data.worldbank.org/indicator/NE.TRD.GNFS.ZS.

Examples

trade_openness(
  exports = c(120, 135, 150),
  imports = c(100, 115, 125),
  gdp = c(500, 540, 590)
)