Examining Association between Consumption, Production and Foreign Trade: A Study of Select Economies

The level of consumption of commodities (goods and services) is one of the key parameters to measure the economic growth and development of a specific territory or region. This study makes an attempt to form an effective concept to measure the consumption level of a domestic territory and to find the relationship between the production, consumption and foreign trade. This study is focused on the measurement of consumption level of top ten global economies along with level of the self-reliance/dependency on the imports. With the application of Multiple Regression Analysis, t-test and CAGR, the study discloses that, in the terms of consumption level there is a lot of variation in all these economies and there is high degree positive correlation between the consumption and production level.