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The International Trade Network: weighted network analysis and modelling

Author

Listed:
  • K. Bhattacharya
  • G. Mukherjee
  • J. Saramaki
  • K. Kaski
  • S. S. Manna

Abstract

Tools of the theory of critical phenomena, namely the scaling analysis and universality, are argued to be applicable to large complex web-like network structures. Using a detailed analysis of the real data of the International Trade Network we argue that the scaled link weight distribution has an approximate log-normal distribution which remains robust over a period of 53 years. Another universal feature is observed in the power-law growth of the trade strength with gross domestic product, the exponent being similar for all countries. Using the 'rich-club' coefficient measure of the weighted networks it has been shown that the size of the rich-club controlling half of the world's trade is actually shrinking. While the gravity law is known to describe well the social interactions in the static networks of population migration, international trade, etc, here for the first time we studied a non-conservative dynamical model based on the gravity law which excellently reproduced many empirical features of the ITN.

Suggested Citation

  • K. Bhattacharya & G. Mukherjee & J. Saramaki & K. Kaski & S. S. Manna, 2007. "The International Trade Network: weighted network analysis and modelling," Papers 0707.4343, arXiv.org, revised Mar 2008.
  • Handle: RePEc:arx:papers:0707.4343
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    Cited by:

    1. Sgrignoli, Paolo & Metulini, Rodolfo & Schiavo, Stefano & Riccaboni, Massimo, 2015. "The relation between global migration and trade networks," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 417(C), pages 245-260.
    2. Marco Dueñas & Giorgio Fagiolo, 2014. "Global Trade Imbalances: A Network Approach," Advances in Complex Systems (ACS), World Scientific Publishing Co. Pte. Ltd., vol. 17(03n04), pages 1-29.
    3. Shamnaaz Sufrauj & Stefano Schiavo & Massimo Riccaboni, 2015. "Big hits, export concentration and volatility," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 32(2), pages 135-166, August.
    4. Massimo Riccaboni & Stefano Schiavo, 2009. "The Structure and Growth of Weighted Networks," Papers 0908.0348, arXiv.org, revised Dec 2009.
    5. Gautier M. Krings & Jean-Franc{c}ois Carpantier & Jean-Charles Delvenne, 2013. "Trade integration and trade imbalances in the European Union: a network perspective," Papers 1309.4156, arXiv.org.
    6. Massimo Riccaboni & Alessandro Rossi & Stefano Schiavo, 2013. "Global networks of trade and bits," Journal of Economic Interaction and Coordination, Springer;Society for Economic Science with Heterogeneous Interacting Agents, vol. 8(1), pages 33-56, April.
    7. Fan, Ying & Ren, Suting & Cai, Hongbo & Cui, Xuefeng, 2014. "The state's role and position in international trade: A complex network perspective," Economic Modelling, Elsevier, vol. 39(C), pages 71-81.
    8. Song, Dong-Ming & Jiang, Zhi-Qiang & Zhou, Wei-Xing, 2009. "Statistical properties of world investment networks," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 388(12), pages 2450-2460.
    9. S. Maveyraud, 2013. "La structure du réseau de commerce international en 1850," Economies et Sociétés (Serie 'Histoire Economique Quantitative'), Association Française de Cliométrie (AFC), issue 47, pages 1621-1635, Septembre.
    10. Frank Emmert-Streib & Aliyu Musa & Kestutis Baltakys & Juho Kanniainen & Shailesh Tripathi & Olli Yli-Harja & Herbert Jodlbauer & Matthias Dehmer, 2017. "Computational Analysis of the structural properties of Economic and Financial Networks," Papers 1710.04455, arXiv.org.
    11. Massimo Riccaboni & Stefano Schiavo, 2009. "The Structure and Growth of International Trade," Documents de Travail de l'OFCE 2009-24, Observatoire Francais des Conjonctures Economiques (OFCE).
    12. Sufrauj, Shamnaaz & Schiavo, Stefano & Riccaboni, Massimo, 2014. "The Structure and Growth of World Trade, and the Role of Europe in the Global Economy," MPRA Paper 54122, University Library of Munich, Germany.
    13. Barigozzi, Matteo & Fagiolo, Giorgio & Mangioni, Giuseppe, 2011. "Identifying the community structure of the international-trade multi-network," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 390(11), pages 2051-2066.
    14. Dibrova, Anatolii & Zhemoyda, Oleksandr & Ryabchenko, Oksana & Dibrova, Larysa, 2014. "Ukrainian prospects in the space of European agro-food trade based on quantitative economic analysis," Problems of World Agriculture / Problemy Rolnictwa Światowego, Wydział Nauk Ekonomicznych, Uniwersytet Warszawski, vol. 14(29).
    15. Yuke Li & Tianhao Wu & Nicholas Marshall & Stefan Steinerberger, 2016. "Extracting Geography from Trade Data," Papers 1607.05235, arXiv.org, revised Jul 2016.
    16. Li, Yuke & Wu, Tianhao & Marshall, Nicholas & Steinerberger, Stefan, 2017. "Extracting geography from trade data," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 473(C), pages 205-212.
    17. Fraňková, Eva & Fousek, Jan & Kala, Lukáš & Labohý, Jan, 2014. "Transaction network analysis for studying Local Exchange Trading Systems (LETS): Research potentials and limitations," Ecological Economics, Elsevier, vol. 107(C), pages 266-275.
    18. repec:eee:forpol:v:86:y:2018:i:c:p:45-66 is not listed on IDEAS
    19. 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.
    20. Vidmer, Alexandre & Zeng, An & Medo, Matúš & Zhang, Yi-Cheng, 2015. "Prediction in complex systems: The case of the international trade network," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 436(C), pages 188-199.
    21. Hong, Inho & Jung, Woo-Sung, 2016. "Application of gravity model on the Korean urban bus network," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 462(C), pages 48-55.
    22. Hoppe, K. & Rodgers, G.J., 2015. "A microscopic study of the fitness-dependent topology of the world trade network," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 419(C), pages 64-74.
    23. repec:ebl:ecbull:eb-17-00361 is not listed on IDEAS
    24. Hübler, Michael, 2016. "A new trade network theory: What economists can learn from engineers," Economic Modelling, Elsevier, vol. 55(C), pages 115-126.
    25. Zhang, Jiang & Feng, Yuanjing, 2014. "Common patterns of energy flow and biomass distribution on weighted food webs," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 405(C), pages 278-288.

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