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Brexit and Canadadvent: An Application of Graphs and Hypergraphs to Recent International Trade Agreements

Author

Listed:
  • Michela Chessa

    (Université Côte d'Azur, France
    GREDEG CNRS)

  • Arnaud Persenda

    (Université Côte d'Azur, France
    GREDEG CNRS)

  • Dominique Torre

    (Université Côte d'Azur, France
    GREDEG CNRS
    University of Bergamo)

Abstract

This paper uses a network approach to study the relationship between trade agreements and trade flows. For the first time in the literature, hypergraphs are used to capture the topology of trade agreements, while theusual graphs are used to represent trade fows. For our analysis, we focused on a snapshot of 2017 data. This data did not consider CETA as an agreement already in force (the provisional application began only on September 21). It was also several years before Brexit. An analysis of modularity conducted on both the trade agreements and the trade flows shows an imperfect correspondence between the communities of countries found within the two networks. The results justify Brexit as a way to reconcile the networks of flows and agreements, and the CETA agreement as a confirmation that Canada already belonged to the module of countries including the EU community concerning trade agreements.

Suggested Citation

  • Michela Chessa & Arnaud Persenda & Dominique Torre, 2022. "Brexit and Canadadvent: An Application of Graphs and Hypergraphs to Recent International Trade Agreements," GREDEG Working Papers 2022-35, Groupe de REcherche en Droit, Economie, Gestion (GREDEG CNRS), Université Côte d'Azur, France.
    • Handle: RePEc:gre:wpaper:2022-35
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    More about this item

    Keywords

    hypergraphs; trade agreements; networks; Brexit; CETA;
    All these keywords.

    JEL classification:

    • F10 - International Economics - - Trade - - - General
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F15 - International Economics - - Trade - - - Economic Integration
    • C69 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Other

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