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The Evolution of the World Trade Web. A Weighted-Network Analysis. 49.ma Riunione Scientifica Annuale. Società Italiana degli Economisti

Author

Listed:
  • Giorgio Fagiolo

    (Laboratory of Economics and Management (LEM))

  • Javier Reyes

    (Department of Economics)

  • Stefano Schiavo

    (Department of Economics [Università di Trento])

Abstract

This paper employs a weighted network approach to study the empirical properties of the web of trade relationships among world countries, and its evolution over time. We show that most countries are characterized by weak trade links; yet, there exists a group of countries featuring a large number of strong relationships, thus hinting to a core-periphery structure. Also, better-connected countries tend to trade with poorly-connected ones, but are also involved in highly-interconnected trade clusters. Furthermore, rich countries display more intense trade links and are more clustered. Finally, all network properties are remarkably stable across the years and do not depend on the weighting procedure.

Suggested Citation

  • Giorgio Fagiolo & Javier Reyes & Stefano Schiavo, 2008. "The Evolution of the World Trade Web. A Weighted-Network Analysis. 49.ma Riunione Scientifica Annuale. Società Italiana degli Economisti," Sciences Po publications info:hdl:2441/9795, Sciences Po.
  • Handle: RePEc:spo:wpmain:info:hdl:2441/9795
    as

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    References listed on IDEAS

    as
    1. Furusawa, Taiji & Konishi, Hideo, 2007. "Free trade networks," Journal of International Economics, Elsevier, vol. 72(2), pages 310-335, July.
    2. Giorgio Fagiolo, 2006. "Directed or Undirected? A New Index to Check for Directionality of Relations in Socio-Economic Networks," Economics Bulletin, AccessEcon, vol. 3(34), pages 1-12.
    3. Gianmarco Ottaviano & Takatoshi Tabuchi & Jacques-FranÁois Thisse, 2002. "Agglomeration and Trade Revisited," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 43(2), pages 409-436, May.
    4. Hojman, Daniel A. & Szeidl, Adam, 2008. "Core and periphery in networks," Journal of Economic Theory, Elsevier, vol. 139(1), pages 295-309, March.
    5. Dorogovtsev, S.N. & Mendes, J.F.F., 2003. "Evolution of Networks: From Biological Nets to the Internet and WWW," OUP Catalogue, Oxford University Press, number 9780198515906.
    6. James E. Rauch & Alessandra Casella, 2003. "Overcoming Informational Barriers to International Resource Allocation: Prices and Ties," Economic Journal, Royal Economic Society, vol. 113(484), pages 21-42, January.
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    10. Fagiolo, Giorgio & Reyes, Javier & Schiavo, Stefano, 2008. "On the topological properties of the world trade web: A weighted network analysis," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 387(15), pages 3868-3873.
    11. Raja Kali & Javier Reyes, 2007. "The architecture of globalization: a network approach to international economic integration," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 38(4), pages 595-620, July.
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    More about this item

    Keywords

    Networks; World trade web; international trade; weighted network analysis; integration; trade openness; globalization;

    JEL classification:

    • F10 - International Economics - - Trade - - - General
    • D85 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Network Formation

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