Compositional analysis of trade flows structure
Statistical analysis of trade flows structure can significantly help to reveal or to confirm important macroeconomic phenomena. Because of relative character of these multivariate observations, application of standard multivariate methods directly to raw data can lead to meaningless results, affected by trade sizes of different countries. As a way out, it is proposed to employ the logratio methodology that is able to capture interesting features through logratios between compositional parts. Particularly, the perturbation operation together with clr coefficients for coordinate representation of compositions seem to be easy to handle and to interpret for the purpose. Popular exploratory tools, principal component analysis and PARAFAC modeling of threeway data, resulting from a long-term study of the export/import structure, are applied in the compositional context for data from OECD and WIOD databases. The results show that the logratio methodology enables to reveal interesting features of world trade flows and thus provides a preferable alternative to existing exploratory tools.
How to Cite
The Austrian Journal of Statistics publish open access articles under the terms of the Creative Commons Attribution (CC BY) License.
The Creative Commons Attribution License (CC-BY) allows users to copy, distribute and transmit an article, adapt the article and make commercial use of the article. The CC BY license permits commercial and non-commercial re-use of an open access article, as long as the author is properly attributed.
Copyright on any research article published by the Austrian Journal of Statistics is retained by the author(s). Authors grant the Austrian Journal of Statistics a license to publish the article and identify itself as the original publisher. Authors also grant any third party the right to use the article freely as long as its original authors, citation details and publisher are identified.
Manuscripts should be unpublished and not be under consideration for publication elsewhere. By submitting an article, the author(s) certify that the article is their original work, that they have the right to submit the article for publication, and that they can grant the above license.