Export and Import for Data for Qatar - Example

Paper 1 Export and Import for Data for Qatar (2000 to 2013) Table 1: Qatar’s exports of goods and services Year Total exports of goods and services (values in billion US$) 2000 11.95 2001 11.56 2002 11.68 2003 14.52 2004 20.36 2005 28.98 2006 38.24 2007 48.05 2008 70.73 2009 50.31 2010 75.07 2011 121.69 2012 143.64 2013 136.82 Figure 1: Qatar’s exports of goods and services Sources: World Bank (2014a); Geronimo (2014). Table 2: Qatar’s imports of goods and services Year Total imports of goods and services (values in billion US$) 2000 3.97 2001 5.1 2002 5.45 2003 6.7 2004 8.32 2005 13.21 2006 21.77 2007 28.57 2008 32.36 2009 28.37 2010 29.72 2011 43.8 2012 54.7 2013 39.58 Figure 2: Qatar’s imports of goods and services Sources: World Bank (2014b); Index Mundi (2014) Comparison Year Exports (billion US$) Imports (billion US$) 2000 11.95 3.97 2001 11.56 5.1 2002 11.68 5.45 2003 14.52 6.7 2004 20.36 8.32 2005 28.98 13.21 2006 38.24 21.77 2007 48.05 28.57 2008 70.73 32.36 2009 50.31 28.37 2010 75.07 29.72 2011 121.69 43.8 2012 143.64 54.7 2013 136.82 39.58 Figure 2: Qatar’s exports and imports of goods and services Summary: Overall, Qatar has experienced an increase in the value of goods and services that it exports as well as those that it imports between 2000 and 2013. However, what comes out clearly is that over the years, the value of goods and services exported by Qatar exceeds the value of goods and services that the country imports. Even though the values vary every year, exports always exceed imports as shown in figure 2. Qatar can therefore be said to be experiencing a favorable balance of trade since it exports more than it imports (Shekhar & Shekhar, 2005, p. 454). It is however important to note that balance of trade refers only to observable goods that are either exported or imported (Shekhar & Shekhar, 2005, p. 454). The reason why the country has a favorable balance of trade is that it is major exporter of petrochemicals including liquefied natural gas, propane, crude oil, polyethylene and urea (Oxford Business Group, 2007, p. 104). The value of these products exceeds that of imports such as food and machinery by a wide margin (EconomyWatch, 2010). References EconomyWatch. (2010, June 29). Qatar export, import and trade. Retrieved from http://www.economywatch.com/world_economy/qatar/export-import.html Geronimo, A. (2014, June 23). Japan emerged as Qatar’s biggest export destination in 2013. Middle East Trade and Export. Retrieved from http://www.tradeandexportme.com/2014/06/japan-emerged-as-qatars-biggest-export-destination-in-2013/ Index Mundi. (2014). Qatar imports. Retrieved from http://www.indexmundi.com/qatar/imports.html Oxford Business Group. (2007). The Report: Emerging Qatar 2007. Retrieved from https://books.google.co.ke/books?id=Q4yJwx09eQ0C&pg=PA104&dq=why+Qatar+exports+more+than+it+imports&hl=en&sa=X&ei=eqWNVJEui6s8-uWAuA4&ved=0CCYQ6AEwAA#v=onepage&q=why%20Qatar%20exports%20more%20than%20it%20imports&f=false Shekhar, K.C., & Shekhar, L. (2005). Banking theory and practice (19th ed.). New Delhi: Vikas Publishing House Pvt Ltd. World Bank. (2014a). Exports of goods and services (current US$). Retrieved from http://data.worldbank.org/indicator/NE.EXP.GNFS.CD World Bank. (2014b). Imports of goods and services (current US$).Retrieved from http://data.worldbank.org/indicator/NE.IMP.GNFS.CD Paper 2 Introduction This paper presents information on Qatar’s exports and imports. The discussion is based on information on the country’s exports and imports for the period 2000 to 2013. To achieve this, the paper also presents details regarding exports and imports to help understand the significance of these concepts to countries, and particularly Qatar. For instance, different countries have different levels of export and imports. In addition, the difference in value between what a country exports and what the same country imports has an implication on the country’s economic situation. As well, exports and imports account for a certain percentage of a country’s gross domestic product (GDP) and this too has implications for the country’s economy. Therefore, in this paper, the percentages that exports and imports account for in relation to the GDP of Qatar are also presented and the implications of the figures discussed. Exports, imports and the relationship between them Exports Exports refer to the value of goods and services that a country provides to the rest of the world (World Bank, 2014a). That is, exports mean the total worth of services and goods that are offered by a country to markets in other countries across the world. These include insurance, cargo, merchandise, travel, transport, communication, royalties, patents, license fees, information, financial, construction, business, government services, and so forth (World Bank, 2014a). Exports however exclude payments for employees and income derived from investment as well as transfer payments (World Bank, 2014a). Imports Imports represent the value of goods and services that a country receives from the rest of the world (World Bank, 2014b). This basically implies the value of goods and services that a country brings in from other countries across the world. Such goods and services include freight, merchandise, transport, insurance, royalties, travel, license fees, communication, financial services, construction, business, government services, personal services, and many other types of services and goods (World Bank, 2014b). However, imports exclude payments for employees as well as income from investment and transfer payments (World Bank, 2014b). Balance of trade Balance of trade refers to the relationship between the exports and imports of commodities of a country (Shekhar & Shekhar, 2005, p. 254). However, the term refers only to the observable items that enter or leave the country in the sense that such commodities are recorded in the customs departments of the countries that are involved. When a country’s exports exceed its imports, the country is said to have a favorable balance of trade (Shekhar & Shekhar, 2005, p. 254). When the opposite happens, that is, when a country imports more than it exports, the country is said to have an unfavorable balance of trade (Shekhar & Shekhar, 2005, p. 254). Based on the comparison of Qatar’s exports and imports, the country can be said to have had a favorable balance of trade all through from 2000 to 2013. This is especially true assuming that the country has mainly been exporting visible items and also importing visible goods. This is explained in more detail in the following section. Qatar’s exports and imports Looking at Qatar’s export and import data (2000 to 2013), it can be seen that the value of goods and services that the country exports exceeds the value of services and goods that the country imports. A comparison of these values is represented in table 1 figure 1 below. Table 1: Qatar’s exports and imports (2000 to 2013) Year Exports (values in billion US$) Imports (values in billion US$) 2000 11.95 3.97 2001 11.56 5.1 2002 11.68 5.45 2003 14.52 6.7 2004 20.36 8.32 2005 28.98 13.21 2006 38.24 21.77 2007 48.05 28.57 2008 70.73 32.36 2009 50.31 28.37 2010 75.07 29.72 2011 121.69 43.8 2012 143.64 54.7 2013 136.82 39.58 Figure 1: Qatar’s exports and imports of goods and services (2000 to 2013) Sources: World Bank (2014a); World Bank (2014b) Although the values of imports and exports vary from year to year, the trend that can be seen is that both values have increased significantly between 2000 and 2013. Another point that is worth noting is that the value of exports has consistently been higher than that of imports. Qatar’s main exports are petrochemicals such as liquefied natural gas, propane, crude oil, polyethylene and urea; and the country’s main imports are machinery and food items (Shekhar & Shekhar, 2005, p. 254; EconomyWatch, 2010). From this, it can be said that Qatar has a favorable balance of trade. This is especially true since the value of the petrochemicals that Qatar exports far outweighs the value of machinery and food items that the country imports. Qatar’s exports and imports can also be compared in terms of their proportion to the country’s GDP as shown in table 2 and figure 2. Generally, exports as a percentage of the GDP exceed imports expressed in the same way throughout the period 2000-2013. This means that’s Qatar’s economy is largely dependent on exports. The advantage of having more exports of processed goods (for example petrochemicals in the case of Qatar) is that such as an economy increases employment and income (OECD, 2011, p. 122). Table 1: Qatar’s exports and imports as percentages of the country’s GDP (2000-2013) Year Exports as % of GDP Imports as % of GDP 2000 67 22 2001 66 29 2002 60 28 2003 62 28 2004 64 26 2005 65 30 2006 63 36 2007 60 36 2008 61 28 2009 51 29 2010 60 24 2011 72 26 2012 76 29 2013 71.7 19.5 Figure 2: Qatar’s exports and imports as percentages of the country’s GDP (2000-2013) Sources: World Bank (2014c); World Bank (2014d); Index Mundi (2014a); Index Mundi (2014b) Note: The values for 2013 are based on the following estimates: Imports – $39.58 billion (Index Mundi, 2014a) GDP – $202.5 billion (World Bank, 2014e) Summary It can be seen that in the period between 2000 and 2013, both Qatar’s exports and imports have been increasing albeit with some fluctuations between the years. During the entire period, the country has exported more than it has imported. This indicates that Qatar has a favorable balance of trade given that it mainly exports petrochemical products and imports items such as food and machinery. Even in terms of percentages of exports and imports in relation to the country’s GDP, exports still account for a larger percentage. This means that Qatar’s economy is largely export-oriented, with petrochemicals such as liquefied natural gas, propane, crude oil, polyethylene and urea being the main export products. References EconomyWatch. (2010, June 29). Qatar export, import and trade. Retrieved from http://www.economywatch.com/world_economy/qatar/export-import.html Index Mundi. (2014a). Qatar imports. Retrieved from http://www.indexmundi.com/qatar/imports.html Index mundi. (2014b). Qatar economy profile 2014. Retrieved from http://www.indexmundi.com/qatar/economy_profile.html OECD. (2011). Globalisation, comparative advantage and the changing dynamics of trade. Paris: OECD Publishing. Oxford Business Group. (2007). The Report: Emerging Qatar 2007. Retrieved from https://books.google.co.ke/books?id=Q4yJwx09eQ0C&pg=PA104&dq=why+Qatar+exports+more+than+it+imports&hl=en&sa=X&ei=eqWNVJEui6s8-uWAuA4&ved=0CCYQ6AEwAA#v=onepage&q=why%20Qatar%20exports%20more%20than%20it%20imports&f=false World Bank. (2014a). Exports of goods and services (current US$). Retrieved from http://data.worldbank.org/indicator/NE.EXP.GNFS.CD World Bank. (2014b). Imports of goods and services (current US$).Retrieved from http://data.worldbank.org/indicator/NE.IMP.GNFS.CD World Bank. (2014c). Exports of goods and services (% of GDP).Retrieved from http://data.worldbank.org/indicator/NE.EXP.GNFS.ZS?page=2 World Bank. (2014d). Imports of goods and services (% of GDP). Retrieved from http://data.worldbank.org/indicator/NE.IMP.GNFS.ZS/countries World Bank. (2014e). Qatar. Retrieved from http://data.worldbank.org/country/qatar Read More