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International trade network: fractal properties and globalization puzzle

Author

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  • Mariusz Karpiarz
  • Piotr Fronczak
  • Agata Fronczak

Abstract

Globalization is one of the central concepts of our age. The common perception of the process is that, due to declining communication and transport costs, distance becomes less and less important. However, the distance coefficient in the gravity model of trade, which grows in time, indicates that the role of distance increases rather than decreases. This, in essence, captures the notion of the globalization puzzle. Here, we show that the fractality of the international trade system (ITS) provides a simple solution for the puzzle. We argue, that the distance coefficient corresponds to the fractal dimension of ITS. We provide two independent methods, box counting method and spatial choice model, which confirm this statement. Our results allow us to conclude that the previous approaches to solving the puzzle misinterpreted the meaning of the distance coefficient in the gravity model of trade.

Suggested Citation

  • Mariusz Karpiarz & Piotr Fronczak & Agata Fronczak, 2014. "International trade network: fractal properties and globalization puzzle," Papers 1409.5963, arXiv.org.
    • Handle: RePEc:arx:papers:1409.5963
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    Cited by:

    1. Ma, Fei & Wang, Ping, 2024. "Understanding influence of fractal generative manner on structural properties of tree networks," Chaos, Solitons & Fractals, Elsevier, vol. 180(C).
    2. Franco Ruzzenenti, 2018. "The Prism of Elasticity in Rebound Effect Modelling: An Insight from the Freight Transport Sector," Sustainability, MDPI, vol. 10(8), pages 1-13, August.
    3. Lagunas Puls, Sergio, 2022. "Fractalidad implícita en el comercio internacional [Implicit fractality in international trade]," Revista de Métodos Cuantitativos para la Economía y la Empresa = Journal of Quantitative Methods for Economics and Business Administration, Universidad Pablo de Olavide, Department of Quantitative Methods for Economics and Business Administration, vol. 33(1), pages 226-241, June.
    4. Samuel Standaert & Stijn Ronsse & Benjamin Vandermarliere, 2014. "Historical trade integration: Globalization and the distance puzzle in the long 20th century," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 14/897, Ghent University, Faculty of Economics and Business Administration.
    5. Julian Maluck & Reik V Donner, 2015. "A Network of Networks Perspective on Global Trade," PLOS ONE, Public Library of Science, vol. 10(7), pages 1-24, July.
    6. Ausloos, Marcel & Saeedian, Meghdad & Jamali, Tayeb & Farahani, S. Vasheghani & Jafari, G. Reza, 2017. "How visas shape and make visible the geopolitical architecture of the planet," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 484(C), pages 267-275.
    7. Yuke Li & Tianhao Wu & Nicholas Marshall & Stefan Steinerberger, 2016. "Extracting Geography from Trade Data," Papers 1607.05235, arXiv.org, revised Jul 2016.
    8. Li, Yuke & Wu, Tianhao & Marshall, Nicholas & Steinerberger, Stefan, 2017. "Extracting geography from trade data," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 473(C), pages 205-212.
    9. Adrian Bejan & George Tsatsaronis, 2021. "Purpose in Thermodynamics," Energies, MDPI, vol. 14(2), pages 1-25, January.

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