The trade freedom score is based on two inputs: The trade-weighted average tariff rate, Non-tariff barriers (NTBs). Weighted average tariffs is a purely quantitative measure and accounts for the basic calculation of the score. The presence of NTBs in a country affects its trade freedom score by incurring a penalty of up to 20 percentage points, or one-fifth of the maximum score. The country's trade freedom ranges between 0 and 100, where 100 represents the maximum degree of trade freedom.
Type of variable: Continuous
Last updated by source: 2021-01-29