Tradable Share of the Arizona Economy
The percentage of the Arizona economy in 2010 that is tradable varies widely by economic measure. Tradability is much higher based on gross domestic product (50 percent) than on earnings (41 percent), with the share lowest based on employment (39 percent).
The tradable share of the economy is not constant over time. Some sectors are more cyclical than others, introducing an up-and-down pattern to the tradable percentage. In addition, the long-term growth in some sectors is greater than in others, causing the tradable share to follow a long-term trend. All three economic measures display cyclicality in the tradable share. In addition, the tradable percentage has trended down since the late 1990s in Arizona. The lowest values were reached in 2006 or 2007 on each measure. Some recovery occurred during the 2008-09 recession, when some nontradable activities such as construction were especially affected by the economic downturn.