IDEAS home Printed from https://ideas.repec.org/a/taf/cnpexx/v19y2014i4p601-627.html
   My bibliography  Save this article

Towards Trade Equalisation: A Network Perspective on Trade and Income Convergence Across the Twentieth Century

Author

Listed:
  • Mark Abdollahian
  • Zining Yang

Abstract

An enduring dynamic of the twentieth century is the dramatic expansion of global trade with increased partners, goods, frequency and volumes. Most trade explanations such as the Heckscher-Ohlin, new trade theory, gravity models, and Ricardo and Sraffa focus on how bilateral import and export volumes and intermediate input goods are driven by decreased financial and information transaction costs. Extending work on trade flows and economic development, we derive several network measures of degree, betweenness and eigenvector centrality from dyadic trade flows from 1960 to 2009. We then empirically explore the interactive effects of trade connectivity, economic production and stages of development on income convergence and trade equalisation. We empirically find clear patterns towards a new phenomenon, both sigma levels and beta rates trade convergence and equalisation for our entire sample. Visualising sigma and beta convergence for seven major trading nations from 1920 to 2010, we believe offers new insights into economic development theory if only beginning to loosen the knot of trade, growth and globalisation.

Suggested Citation

  • Mark Abdollahian & Zining Yang, 2014. "Towards Trade Equalisation: A Network Perspective on Trade and Income Convergence Across the Twentieth Century," New Political Economy, Taylor & Francis Journals, vol. 19(4), pages 601-627, August.
  • Handle: RePEc:taf:cnpexx:v:19:y:2014:i:4:p:601-627
    DOI: 10.1080/13563467.2013.796450
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/13563467.2013.796450
    Download Restriction: Access to full text is restricted to subscribers.

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Paul Krugman, 1986. "Strategic Trade Policy and the New International Economics," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262610450, May.
    2. Schuker, S.A., 1988. "American "Reparations" To Germany, 1919-33: Implication For The Third World Debt Crisi," Princeton Studies in International Economics 61, International Economics Section, Departement of Economics Princeton University,.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:cnpexx:v:19:y:2014:i:4:p:601-627. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Chris Longhurst). General contact details of provider: http://www.tandfonline.com/cnpe20 .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.