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The impact of global trade network on technological progress

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  • Song, Caixia
  • Xu, Wenhao

Abstract

Using two-way trade data from 1992 to 2021 for 167 economies around the world, we apply the social network method to construct a global trade network and examine the effect of network centrality on technological progress. The results show that: (1) Degree centrality, Betweenness centrality, and Closeness centrality all have positive and significant impacts on technological progress, and the closer to the center of the global trade network, the more obvious the progress; (2) the impact of global trade network characteristics on technological progress exhibits significant heterogeneity across countries with different income levels, and between developing emerging and developed countries, while at the same time the impact on different aspects of the Malmquist index decomposition also differs; (3) the global trade network’s centrality acts on technological progress through the mechanisms of economies of scale, competition, labor specialization, and knowledge spillovers. This study provides a basis for pursuing a high level of trade openness and for countries around the world to rationally utilize the status of the global trade network to realize technological progress.

Suggested Citation

  • Song, Caixia & Xu, Wenhao, 2026. "The impact of global trade network on technological progress," Economic Analysis and Policy, Elsevier, vol. 91(C), pages 30-46.
    • Handle: RePEc:eee:ecanpo:v:91:y:2026:i:c:p:30-46
    DOI: 10.1016/j.eap.2026.03.007
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