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. It is calculated by dividing the aggregate value of imports and exports over a period by the gross domestic product for the same period. Although called a ratio, it is usually expressed as a percentage. It is used as a measure of the openness of a country to international trade, and so may also be called the trade openness ratio. It may be seen as an indicator of the degree of globalisation of an economy.
Other factors aside, the trade-to-GDP ratio tends to be low in countries with large economies and large populations such as Japan and the United States, and to have a higher value in small economies. Singapore has the highest trade-to-GDP ratio of any country; between 2008 and 2011 it averaged about 400%.
Worldwide trade-to-GDP ratio rose from just over 20% in 1995 to about 30% in 2014.
