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Synchronization of globalized economies

Author

Listed:
  • Edgar J. Sánchez Carrera

    (Department of Economics, Society & Politics, Università di Urbino Carlo Bo - Researh Fellow at the ResearchCenter in Applied Mathematics, Universidad Aut´onoma de Coahuila, Mexico)

  • Vanesa Avalos-Gaytán

    (ResearchCenter in Applied Mathematics, Universidad Aut´onoma de Coahuila, Mexico)

  • Yajaira Cardona Valdés

    (ResearchCenter in Applied Mathematics, Universidad Aut´onoma de Coahuila, Mexico)

Abstract

Does the synchronization of globalized-oscillating economies matter for macroeconomic outcomes? If so, how oscillating economies are synchornized and conform stable networks. In this paper we apply phase oscillator models such as Kuramoto’s model to understand synchronization phenomena in networks of countries. Our aim is to study a network of interacting phase oscillating economies, and an adaptation mechanism for the coupling that promotes the connection strengths between those elements that are dynamically correlated. Under these circumstances, the dynamical organization of the oscillators/economies shapes the topology of the graph in such a way that modularity and assortativity features emerge spontaneously and simultaneously. Our results show the conformation of the network and the global and local synchronization measures for the 42 oscillating economies during the period from 1960 to 2018, using Trade (% of GDP) data. Moreover, we obtain the measure of local assortativity in the formation of those economies that more or less interact or are connected. We conclude that the Kuramoto model with networks is a useful tool to study economics synchronization.

Suggested Citation

  • Edgar J. Sánchez Carrera & Vanesa Avalos-Gaytán & Yajaira Cardona Valdés, 2019. "Synchronization of globalized economies," Working Papers 1909, University of Urbino Carlo Bo, Department of Economics, Society & Politics - Scientific Committee - L. Stefanini & G. Travaglini, revised 2019.
  • Handle: RePEc:urb:wpaper:19_09
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    References listed on IDEAS

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    More about this item

    Keywords

    Business Cycles; Complex Systems; Economics of Globalization; Network Topology; Synchronization; Trade Integration.;
    All these keywords.

    JEL classification:

    • D85 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Network Formation
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F15 - International Economics - - Trade - - - Economic Integration
    • F41 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Open Economy Macroeconomics
    • F44 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - International Business Cycles

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