The Trade Growth Indicator In Italy

Economists and statisticians use various parameters for evaluating economic growth. The most famous and often used one for assessing the economy of a country is gross domestic product or GDP. Gross domestic product is a size of the worthiness of goods and services that one country produces and has a massive effect on global policy. In addition, GDP tends to best receive the true monetary worth of our economy. In UK, GDP is computed through an integration of ways, which contain adding up all the money has been spent, gained and value-added every year. Furthermore, GDP tells you whether your economy is going faster or slower. 

World Development Indicators that has been known as WDI as well is the early World Bank collection of development indicators, gathered from officially known international sources. It presents the most current and precise global development data available, and includes national, regional and global estimates. 

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ECONOMIC INDICATORS 

Economic indicators use to recognize how well an economy is accomplishing. Economic indicators scale the macro economic variables that has straight or indirect effect, enable economists to assess whether the efficiency of economy has improved or declined. 

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ECONOMY OF ITALY 

This article will process and assess the performance of indicators for Italy. Italy has been located in southern Europe. This country has the ninth biggest economy in the world. Economic structure of Italy depends on services and manufacturing. Agriculture share in the total GDP is around 4.0% of the total workforce. The Italy’s manufacturing is specialized in high-quality products and is mostly run by small and medium companies. Many of them are family companies. Furthermore, it has significant role in order to produce the Luxury goods. 

Italy has an extremely industrialized and developed at the northern section of Italy. Therefore, approximately 75% of the Italy’s wealth has been produced in there. However, the southern part of Italy is less dependent on the industry. As a result, unemployment in the north is lower than south and per capita revenue is higher than the south part of Italy. The major exports of Italy are mechanical machinery and equipment, which include for approximately 24% of total exports. Italy is well-known country in the field of fashion and clothing as well. Therefore, all the people know this country with their brands. In fact, exports of clothing stands for approximately 11% of the Italy’s total exports. 

The main products that import to Italy is fuel and it includes 17% of total imports. This is due to the lack of natural resources, which makes it extremely dependent on natural resources imports. Other main imports are the raw materials (%11) and food (%8). [2] 

The aim of this article is to show the application of Tableau software. To do this, the role of trade indicators in Italy as well as the world was visualized using Tableau and the possible growth of this indication in future was predicted by linear regression methods. The growth of trade indicator in Italy will be compared to world and Europe area. I will analyse and interpret each graph separately. According to our dataset Trade is the sum of exports and imports of goods and services measured as a share of gross domestic product. In addition, Trade divided to Home trade and foreign trade and each type divided to sub categories that we can see in Figure below.

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Linear regression  

Linear regression is a fundamental and popular process of predictive methods. In the linear regression, we have one dependent variable and one or more independent variable by that we can explore the correlation between variables. The formula for this method is:

 y = b1*X + b0 (b1 is the slope and b0 is the intercept.)

Six different linear regression analysis are available in statistics as follow: “ simple linear regression, multiple linear regressions, logistic regression, ordinal regression, multinomial regression and discriminant analysis”. To assess the relationship between dependent variable and independent variables Multiple linear regressions can be used [4]. In this project I will evaluate the value of trade indicator and compare one specific country to world and European area. In addition, the correlation between income group and growth of trade in each country will be discussed.

Figure below present the Dashboard developed for demonstrating the growth of trade in Italy and compare the Italy to Europe Union and world. In addition, it shows the difference of trade towards past year in Italy and the most value of trade indictors in the world. Finally, shows what will happen for this indicator in the future.

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