Modeling international crisis synchronization in the World Trade Web
Trade is a fundamental pillar of economy and a form of social organization. Its empirical characterization at the worldwide scale is represented by the World Trade Web (WTW), the network built upon the trade relationships between the different countries. Several scientific studies have focused on the structural characterization of this network, as well as its dynamical properties, since we have registry of the structure of the network at different times in history. In this paper we study an abstract scenario for the development of global crises on top of the structure of connections of the WTW. Assuming a cyclic dynamics of national economies and the interaction of different countries according to the import-export balances, we are able to investigate, using a simple model of pulse-coupled oscillators, the synchronization phenomenon of crises at the worldwide scale. We focus on the level of synchronization measured by an order parameter at two different scales, one for the global system and another one for the mesoscales defined through the topology. We use the WTW network structure to simulate a network of Integrate-and-Fire oscillators for six different snapshots between years 1950 and 2000. The results reinforce the idea that globalization accelerates the global synchronization process, and the analysis at a mesoscopic level shows that this synchronization is different before and after globalization periods: after globalization, the effect of communities is almost inexistent.
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- M. Ayhan Kose & Christopher Otrok & Eswar Prasad, 2012.
"Global Business Cycles: Convergence Or Decoupling?,"
International Economic Review,
Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 53(2), pages 511-538, 05.
- Kose, M. Ayhan & Otrok, Christopher M. & Prasad, Eswar S., 2008. "Global business cycles: convergence or decoupling?," Discussion Paper Series 1: Economic Studies 2008,17, Deutsche Bundesbank, Research Centre.
- M. Ayhan Kose & Christopher Otrok & Eswar S. Prasad, 2008. "Global Business Cycles: Convergence or Decoupling?," NBER Working Papers 14292, National Bureau of Economic Research, Inc.
- Kose, M. Ayhan & Otrok, Christopher & Prasad, Eswar, 2008. "Global Business Cycles: Convergence or Decoupling?," IZA Discussion Papers 3442, Institute for the Study of Labor (IZA).
- Ayhan Kose & Eswar Prasad & Christopher Otrok, 2008. "Global Business Cycles; Convergence or Decoupling?," IMF Working Papers 08/143, International Monetary Fund.
- Giorgio Fagiolo & Javier Reyes & Stefano Schiavo, 2008.
"The World-Trade Web: Topological Properties, Dynamics, and Evolution,"
- Giorgio Fagiolo & Javier Reyes & Stefano Schiavo, 2008. "The World-Trade Web: Topological Properties, Dynamics, and Evolution," LEM Papers Series 2008/16, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
- Giorgio Fagiolo & Javier Reyes & Stefano Schiavo, 2008. "The World-Trade Web: Topological Properties, Dynamics, and Evolution," Sciences Po publications 2008/16, Sciences Po.
- Hyman P. Minsky, 1992. "The Financial Instability Hypothesis," Economics Working Paper Archive wp_74, Levy Economics Institute.
- D. Garlaschelli & T. Di Matteo & T. Aste & G. Caldarelli & M. I. Loffredo, 2007. "Interplay between topology and dynamics in the World Trade Web," Papers physics/0701030, arXiv.org.
- D. Garlaschelli & T. Di Matteo & T. Aste & G. Caldarelli & M. I. Loffredo, 2007. "Interplay between topology and dynamics in the World Trade Web," The European Physical Journal B - Condensed Matter and Complex Systems, Springer;EDP Sciences, vol. 57(2), pages 159-164, 05.
- Jiankui He & Michael W. Deem, 2010. "Structure and Response in the World Trade Network," Papers 1010.0410, arXiv.org.
- Li, Xiang & Ying Jin, Yu & Chen, Guanrong, 2003. "Complexity and synchronization of the World trade Web," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 328(1), pages 287-296.
- Tiziano Squartini & Giorgio Fagiolo & Diego Garlaschelli, 2011. "Randomizing world trade. I. A binary network analysis," Papers 1103.1243, arXiv.org, revised Nov 2011.
When requesting a correction, please mention this item's handle: RePEc:arx:papers:1201.2024. 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: (arXiv administrators)
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 references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link 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 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.