2013/12 | LEM Working Paper Series | |
Global Trade Imbalances: A Network Approach |
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Marco Dueñas, Giorgio Fagiolo |
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Keywords | ||
Trade Imbalances; International Trade Network; Gravity Model; Null Models
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JEL Classifications | ||
F10, D85
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Abstract | ||
We study trade imbalances between world countries in the period
1960-2000 using a complex-network approach. We show that trade
imbalances in absolute value are characterized by a hierarchical
arrangement wherein few rich economies display high clustering and
carry an important amount of global-trade imbalances. In contrast,
trade imbalances in relative terms show a more fragmented topology,
with less concentrated clustering which is particularly high for
emergent economies. In addition, we find that traditional null
random-network models and the gravity model poorly predict the
topology of trade imbalance networks. Our main finding is that the
evolution of the international trade has caused very heterogeneous
imbalances in world economies, which may have important consequences
for global instability and development
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