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The evolution of the world trade web: a weighted-network analysis

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  • Giorgio Fagiolo
  • Javier Reyes
  • Stefano Schiavo

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.
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  • Giorgio Fagiolo & Javier Reyes & Stefano Schiavo, 2010. "The evolution of the world trade web: a weighted-network analysis," Journal of Evolutionary Economics, Springer, vol. 20(4), pages 479-514, August.
    • Handle: RePEc:spr:joevec:v:20:y:2010:i:4:p:479-514
    DOI: 10.1007/s00191-009-0160-x
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    More about this item

    Keywords

    Networks; World trade web; International trade ; Weighted network analysis; Integration; Globalization; F10; D85;
    All these keywords.

    JEL classification:

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

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