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The QAP weighted network analysis method and its application in international services trade

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  • Xu, Helian
  • Cheng, Long

Abstract

Based on QAP (Quadratic Assignment Procedure) correlation and complex network theory, this paper puts forward a new method named QAP Weighted Network Analysis Method. The core idea of the method is to analyze influences among relations in a social or economic group by building a QAP weighted network of networks of relations. In the QAP weighted network, a node depicts a relation and an undirect edge exists between any pair of nodes if there is significant correlation between relations. As an application of the QAP weighted network, we study international services trade by using the QAP weighted network, in which nodes depict 10 kinds of services trade relations. After the analysis of international services trade by QAP weighted network, and by using distance indicators, hierarchy tree and minimum spanning tree, the conclusion shows that: Firstly, significant correlation exists in all services trade, and the development of any one service trade will stimulate the other nine. Secondly, as the economic globalization goes deeper, correlations in all services trade have been strengthened continually, and clustering effects exist in those services trade. Thirdly, transportation services trade, computer and information services trade and communication services trade have the most influence and are at the core in all services trade.

Suggested Citation

  • Xu, Helian & Cheng, Long, 2016. "The QAP weighted network analysis method and its application in international services trade," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 448(C), pages 91-101.
    • Handle: RePEc:eee:phsmap:v:448:y:2016:i:c:p:91-101
    DOI: 10.1016/j.physa.2015.12.094
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    References listed on IDEAS

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