IIT (Sectoral Marginal)
IIT (Aggregate Marginal)
Regional Market Share
We can think of the trade intensity index as a uniform export share. In other words, the statistic tells us whether or not a region exports
more (as a percentage) to a given destination than the world does on average. It is interpreted in much the same way as an export share. It does
not suffer from any ‘size’ bias, so we can compare the statistic across regions, and over time when exports are growing rapidly.
The trade intensity statistic is the ratio of two export shares. The numerator is the share of the destination of interest in the exports of the region under study. The denominator is the share of the destination of interest in the exports of the world as a whole.
Range of values:
Takes a value between 0 and +∞. Values greater than 1 indicate an ‘intense’ trade relationship.
For further note on this indicator, including an example and formula, see the relevant section of Trade Statistics in Policymaking: A Handbook of Commonly Used Trade Indices and Indicators.