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Evolution of international trade and investment networks

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  • Zhang, Shuhong
  • Wang, Lin
  • Liu, Zhixin
  • Wang, Xiaofan

Abstract

In this paper, an evolving two-layer international economy network (IEN) consisting of international trade network (ITN) and international investment network (IIN) as layers, is constructed to investigate the world economy from 2001 to 2010. First, the structure analysis shows that the average partner numbers for both trade and investment are increasing year by year, and the average volume has a significant decrease in 2008 for investment and 2009 for trade. The IIN has longer average path length and dramatically lower edge density compared with the ITN, yet its clustering coefficient is larger in all years. Then, the regional relativity indicates that the longer the distance between two countries, the smaller trade and investment volumes they carry in are general, and the impact of the geographical distance gradually reduces as time goes on. Furthermore, the countries and regions are ranked by Pagerank in ITN, IIN and IEN to illustrate the roles they played. And finally, community structures are detected to visualize the global economic landscape, with countries and regions in the same community ranked according to the total volume of trade or investment.

Suggested Citation

  • Zhang, Shuhong & Wang, Lin & Liu, Zhixin & Wang, Xiaofan, 2016. "Evolution of international trade and investment networks," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 462(C), pages 752-763.
    • Handle: RePEc:eee:phsmap:v:462:y:2016:i:c:p:752-763
    DOI: 10.1016/j.physa.2016.06.117
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