<p>From World Bank, I got the <strong>Household final consumption Expenditure</strong> for many countries across time. I wonder if this consumption includes Consumption expenditure of Imported Goods / Import Volume?</p>

<p>If I want to compute the share of consumption of home goods in total consumption, should I use the following formula?</p>

<p>$\frac{Household final consumption Expenditure - Import Volume}{Household final consumption Expenditure}$</p>

<p>or should I use:</p>

<p>$\frac{Household final consumption Expenditure}{Household final consumption Expenditure + Import Volume}$</p>

<p>Many thanks for your help.</p>

CC BY-SA 4.0
2018-06-09T20:09:00.823Z
Why not just look at imports as a percentage of GDP? Is there a reason to focus on consumer goods and services and exclude goods and services which are used in production processes? If you can explain the reason for the consumer good focus or the reason that the importance of exports in household income is not relevant to the question you want to present or test mathematically, it might be easier to provide a useful answer.
nathanwww
CC BY-SA 4.0
2018-06-09T20:10:20.460Z
Total imports also include goods and services purchased by businesses in order to produce outputs, so both are wrong. You would need data that presents imports of consumer goods and services only, to the exclusion of goods and services purchased as inputs into production processes.
nathanwww
CC BY-SA 4.0
2018-06-10T19:07:32.820Z
thanks for your ideas. i see the point. so GDP would include all consumptions, and to compute the share of consumption of home products, i can use $1-\frac{import}{GDP}$?
user68863
CC BY-SA 4.0
2018-06-11T08:34:20.747Z
@nathanwww Im thinking about $1 - \frac{Import - Import_for_Export}{GDP + Import - Import_for_Export - Export}$. What do you think?
user68863
CC BY-SA 4.0
2018-06-11T15:57:48.373Z
If you have a teacher, maybe plan to spend 5-10 minutes (or more) on this with them during their office hours, so they can identify some potential misunderstandings related to materials currently/recently being learned.
nathanwww
<macroeconomics><international-trade><consumption>
Does Household final consumption Expenditure include Consumption expenditure of Imported Goods
user68863
# Does Household final consumption Expenditure include Consumption expenditure of Imported Goods

(Asked by: username_0 on 2018-06-09)

From World Bank, I got the **Household final consumption Expenditure** for many countries across time. I wonder if this consumption includes Consumption expenditure of Imported Goods / Import Volume?

If I want to compute the share of consumption of home goods in total consumption, should I use the following formula?

$\frac{Household final consumption Expenditure - Import Volume}{Household final consumption Expenditure}$

or should I use:

$\frac{Household final consumption Expenditure}{Household final consumption Expenditure + Import Volume}$

Many thanks for your help.

**Tags:** macroeconomics, international-trade, consumption

> **Comments:**
> **username_1**: Why not just look at imports as a percentage of GDP? Is there a reason to focus on consumer goods and services and exclude goods and services which are used in production processes? If you can explain the reason for the consumer good focus or the reason that the importance of exports in household income is not relevant to the question you want to present or test mathematically, it might be easier to provide a useful answer.  
> **username_1**: Total imports also include goods and services purchased by businesses in order to produce outputs, so both are wrong. You would need data that presents imports of consumer goods and services only, to the exclusion of goods and services purchased as inputs into production processes.  
> **username_0**: thanks for your ideas. i see the point. so GDP would include all consumptions, and to compute the share of consumption of home products, i can use $1-\frac{import}{GDP}$?  
> **username_0**: @username_1 Im thinking about $1 - \frac{Import - Import_for_Export}{GDP + Import - Import_for_Export - Export}$. What do you think?  
> **username_1**: If you have a teacher, maybe plan to spend 5-10 minutes (or more) on this with them during their office hours, so they can identify some potential misunderstandings related to materials currently/recently being learned.  

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## 0 answers

