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Joshua C Hall, Robert Lawson and Chuck Skipton
 
''Estimating the size of the trade sector in the Economic Freedom of the World index''
( 2011, Vol. 31 No.1 )
 
 
The Economic Freedom of the World (EFW) index measures the extent to which nations allow their citizens economic freedom. The freedom of people to trade internationally is a featured area within the index. One component of this area is the size of the trade sector, or rather the deviation of a country's trade sector from its expected size. This note explains the basic methodology used to estimate the model and create the ratings for the deviation of a country's trade sector from its expected size component of the EFW index.
 
 
Keywords: trade sector, economic freedom, distance-adjusted demand
JEL: F1 - Trade: General
P1 - Capitalist Systems: General
 
Manuscript Received : Jun 07 2010 Manuscript Accepted : Jan 30 2011

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