Import quota (national accounts)

The import ratio ( English import quota ) is an economic indicator , which the ratio of imports to GDP an economy reproduces. The opposite is the export quota .

General

The import quota provides information about the foreign trade that a state engages in and the extent of this foreign trade, the so-called foreign trade integration. This is expressed in the foreign trade quota , which takes both exports and imports into account. The difference between exports and imports is called the external contribution , the mean value of the export quota and the import quota is called the degree of openness . Almost self-sufficient countries have low export and import quotas. Conversely, small states usually have higher import quotas than large states , because the latter are generally better equipped with production factors. The absolute import volume is not very meaningful, so that the ratio of the import quota has prevailed internationally. While exports are included in the gross domestic product as domestically produced goods, imports do not form part of the gross domestic product.

calculation

All goods and services acquired from abroad within one year are considered imports . Both aggregates result from the trade and services balance . The import expenditures actually paid for the acquisition ( expenditures in domestic currency and foreign exchange expenditures ) only include the goods and services paid for by the importers , not the imports linked to a payment term . The import expenditures paid are compared to the gross domestic product (GDP), which is a summary of all goods and services produced in the state and thus also contains the exports produced in the country.

${\displaystyle {\text{Importquote}}={\frac {\text{Importausgaben}}{\text{Bruttoinlandsprodukt}}}\times 100}$

If imports increase while GDP remains constant, the import quota increases and vice versa. The import quota changes if the rate of change in the volume of imports differs from that of monetary income . The elasticity of demand for imports is higher, the easier it is to replace domestic goods with imports. There are high elasticities of demand where foreign trade is relatively insignificant and has a low import quota.

Economical meaning

The imports and thus the import quota depend on several factors. First of all, a foreign state must have locational advantages and technical knowledge , as well as produce goods and services that go beyond its own domestic needs for consumption and investment . The part intended for import, in turn, must be superior in terms of market price and quality to the comparable competing goods and services of the importing country. In addition, exchange rate relationships ( terms of trade ) must ensure a favorable import climate. If these prerequisites are met, then imports can be increased - with a disproportionately low growth in exports - up to a situation in which the import-related foreign exchange outflows lead to the complete reduction of the currency reserves , so that a de facto or formal devaluation of the domestic currency of the importing country is brought about.

As a rule, this devaluation leads to a weakening of the imports - invoiced in foreign currency - and thus the import quota, because the import prices become more expensive for the domestic importers because of the higher foreign currency exchange rates. An appreciation in the exporter's country has the same effect . Also, inflation in the country of the exporter has a price increase in import prices from the importers the consequence. Devaluation / revaluation and inflation are therefore the most important correctives for the import quota.

use

Those who export are also allowed to import and use part of the foreign currency they generate. Because the export proceeds are used to pay for imports and debt servicing ( interest expense and repayment ) for national debts . As a result, export revenues also play a role in the key figure for the interest coverage ratio . The situation is critical for a state if the debt service exceeds 20% to 25% of the permanently achievable export revenues or reaches more than 20% of the state expenditure . Then he may have to reduce his imports because the export proceeds left over after paying the debt service are no longer sufficient to pay for the imports. The higher the export quota, the more imports and national debt a state can afford and vice versa.

The import quota is a key figure that plays an important role in country ratings by rating agencies and banks . All other things being equal, a rating improves with a low import quota and vice versa. This is particularly due to the fact that a low import quota - with a higher export quota - leads to foreign exchange inflows in favor of the currency reserves of a state, which is regarded as favorable. This situation can also lead to negative consequences if a growing dependency on imports leads to an economic dependence on the economy in the exporting countries and the imported goods displace the importing country's own goods. If the import bias even resulted in trade deficits, the goal of external trade equilibrium has not been achieved.

The fact that small states have relatively high import quotas is statistically proven, because in terms of the import quota in Europe, Luxembourg (177.6%), Malta (137.8%) and Ireland (100.6%) lead. On the other hand, large states such as Germany (39.1%), France (31.4%), Spain (30.7%), Greece (30.3%), Great Britain (29.4%) and Italy (27%) show lower figures Import quotas. Import quotas over 100% can be explained by the fact that the states concerned have high imports - not included in GDP - which they export after further processing and / or take on a pure trade function and export imported goods at a higher price. An example of this is Singapore , because goods are shipped to Singapore and then reloaded and shipped from there without further processing. Accordingly, Singapore has high exports and imports; it achieved an import quota of 167.7% (2014).

Companies

Industries and companies use the import quota to denote the share of import sales in total sales. It reflects the import intensity:

${\displaystyle {\text{Importquote}}={\frac {\text{Wareneinsatz aus dem Ausland}}{\text{Umsatzerlöse}}}\times 100}$

Here, too, the fact that an increasing cost of goods from abroad with constant total sales results in an increasing import quota and vice versa. While only 17% of small and medium-sized enterprises (SMEs) had imported goods in 2011, the proportion of large companies was 45%. Measured in terms of foreign trade volume, SMEs only had a 28% share, the rest of 72% was accounted for by large companies. The import intensity of large German companies is therefore much higher. According to economic sectors (2004) textiles / clothing industry / leather production lead with 427% of gross value added , followed by mineral oil processing (355%), other vehicles (307%) or electrical products (168%).

quota

→ Main article : import quota

An import quota can also be understood as a state import restriction , i.e. a quantitative allocation of the import quantities of all or certain goods. It is usually part of the foreign exchange management due to limited foreign exchange stocks with which imports have to be paid for. It always increases the domestic price of the imported goods.

Individual evidence

1. ↑ Manfred Hieber, Foreign Trade, Economic Expansion and Price Level , Volume 34, 1967, p. 39
2. ^ Anton Konrad, Balance of Payments Disturbances and Economic Growth , 1962, p. 29
3. ↑ Reinhold Sellien, Gabler's Wirtschafts-Lexikon , Volume 2, 1977, Sp. 1400
4. ↑ Harold Lydall, Yugoslav Socialism: Theory and Practice , 1984, p. 226
5. ↑ Urs Egger, Agricultural Strategies in Various Economic Systems , 1989, p. 124
6. ↑ Statista.de The statistics portal, European Union: Import quotas in the member states in 2015
7. ↑ Federal Statistical Office, Economy and Statistics , January 2014, p. 48
8. ^ Paul R. Krugman / Maurice Obstfeld, Internationale Wirtschaft , 2009, p. 267