| Code | TM.VAL.MRCH.WR.ZS |
| Indicator Name | Merchandise imports from low- and middle-income economies within region (% of total merchandise imports) |
| Short definition | Merchandise imports from low- and middle-income economies within region are the sum of merchandise imports by the reporting economy from other low- and middle-income economies in the same World Bank region according to the World Bank classification of economies. Data are as a percentage of total merchandise imports by the economy. Data are computed only if at least half of the economies in the partner country group had non-missing data. No figures are shown for high-income economies, because they are a separate category in the World Bank classification of economies. |
| Long definition | Merchandise imports from low- and middle-income economies within region are the sum of merchandise imports by the reporting economy from other low- and middle-income economies in the same World Bank region according to the World Bank classification of economies. Data are as a percentage of total merchandise imports by the economy. Data are computed only if at least half of the economies in the partner country group had non-missing data. No figures are shown for high-income economies, because they are a separate category in the World Bank classification of economies. |
| Source | Staff estimates, World Bank (WB);
Direction of Trade database, International Monetary Fund (IMF) |
| Topic | Private Sector & Trade: Imports |
| Dataset | WDI |
| Periodicity | Annual |
| Reference period | 1960-2023 |
| Aggregation method | Weighted average |
| Statistical concept and methodology | Methodology: This indicator measures the percentage of total merchandise imports by the reporting country that originate from low- and middle-income economies within region. The purpose is to assess the relative importance of trade with low- and middle-income economies within region economies within the broader context of global imports. The numerator includes the total value of goods imported from low- and middle-income economies within region, while the denominator includes all merchandise imports received by the reporting economy within the reference year. Both values are recorded in current U.S. dollars and typically sourced from national customs declarations.
The origin of merchandise imports is determined based on standard customs procedures, such as certificates of origin and supporting shipping documentation. Goods are generally recorded on a cost-insurance-freight (CIF) basis, meaning the import value includes the cost of the goods as well as transportation and insurance costs incurred up to the point of entry into the importing country. This ensures that comparisons across economies reflect the total landed value of imports.
The classification of low- and middle-income economies within region follows the grouping conventions available at the time of reporting. Where applicable, economies are grouped according to income level, regional affiliation, or development status. The indicator enables monitoring of trade exposure and diversification by identifying which country groupings supply a significant portion of merchandise goods. In some cases, governments may also use this metric to guide trade policy, tariff design, or regional cooperation strategies. Fluctuations in the share may reflect changes in trade agreements, exchange rates, supply chain dependencies, or global demand for specific products. |
| Development relevance | The relative importance of intraregional trade is higher for both landlocked countries and small countries with close trade links to the largest regional economy. For most low- and middle-income economies - especially smaller ones - there is a "geographic bias" favoring intraregional trade. Despite the broad trend toward globalization and the reduction of trade barriers, the relative share of intraregional trade increased for most economies between 1999 and 2010. This is due partly to trade-related advantages, such as proximity, lower transport costs, increased knowledge from repeated interaction, and cultural and historical affinity. The direction of trade is also influenced by preferential trade agreements that a country has made with other economies. Though formal agreements on trade liberalization do not automatically increase trade, they nevertheless affect the direction of trade between the participating economies. |
| Limitations and exceptions | Data on exports and imports are from the International Monetary Fund's (IMF) Direction of Trade database and should be broadly consistent with data from other sources, such as the United Nations Statistics Division's Commodity Trade (Comtrade) database. All high-income economies and major low- and middle-income economies report trade data to the IMF on a timely basis, covering about 85 percent of trade for recent years. Trade data for less timely reporters and for countries that do not report are estimated using reports of trading partner countries. Therefore, data on trade between developing and high-income economies should be generally complete. But trade flows between many low- and middle-income economies - particularly those in Sub-Saharan Africa - are not well recorded, and the value of trade among low- and middle-income economies may be understated. |
| License URL | https://datacatalog.worldbank.org/public-licenses#cc-by |
| License Type | CC BY-4.0 |
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