UNIDO Collection of Trade Standards Compliance Footprints

26/08/2024

DOCUMENT DESCRIPTION

Unit Rejection Rate (URR): Number of rejections per US$ 1 million of exports over the period 2002 to 2010. This measure takes account of changes in the volume of exports, providing a direct measure of the rate of non-compliance.

Relative Rejection Rate (RRR) and the Relative Rejection Rate Indicator (RRRI): First, the “relative rejection rate” (RRR) is calculated as the ratio of a country’s share of total rejections in one market to its share of total imports in this market for the entire period (i.e., 2002 to 2010). This ratio is then converted into natural logarithms to generate a normal distribution. The natural logarithms are divided into three equal groups to create a tercile distribution. Countries in the highest tercile are labeled ‘high’, those in the middle tercile are labeled ‘medium’, and those in the bottom tercile are labeled ‘low,’ reflecting relatively poor, medium, or good compliance performance.