A microscopic study of the fitness-dependent topology of the world trade network

Abstract

Previous studies have suggested that the world-trade network belongs to the class of static hidden variable models. In this article we investigate the microscopic structure of the world trade network, that is the hidden variable correlation matrix of the network. The hidden variable is defined as a rank ordering of gross domestic products. This choice significantly reduces the noise in the statistical analysis found in previous studies. The hidden variable correlation matrix, that expresses the probability that a trade relationship between two countries of given fitness exists, suggests an attachment kernel that at least partially favours trading pairs or dissimilar fitness rather than the purely multiplicative one found previously. Additionally, we provide an in-depth look at the data source and reveal that first-order results, such as the degree distribution, exhibit significant qualitative differences depending on the data provider. Furthermore, we shed light on the intertemporal activity of international trade and point out that fluctuations occur mostly between countries with strong dissimilarities of fitness and connectivity.

Features and evolution of international fossil energy trade relationships: A weighted multilayer network analysis

“…Complex network theory can analyze the world-wide trade system at global and local levels, so as to reveal many new features http://dx.doi.org/10.1016/j.apenergy.2015.07.054 0306-2619/Ó 2015 Elsevier Ltd. All rights reserved. of the international trade topologically and dynamically [1][2][3]. Currently, complex network theory have been proposed to solve problems in international fossil energy trade.…”

Incremental formation of scale-free fitness networks

“…A random approach uses the expansion p(k|x) into its contributions, see Boguná and Pastor-Satorras [3]. Another approach is to derive it kinetically, where links deployed sequentially see Bedogne and Rodgers [2], Hoppe and Rodgers [19], which ts with our approach in the network formation in the present paper. So, the probability p L (k|x) that a node with tness x has out-degree k in a network with N nodes and L links evolves as 3 :…”

“…A generalization of such models has been deeply addressed by Boguná and Pastor-Satorras [3], Serrano et al [26] which makes uses of a microscopic description of the system. Finally a more recent approach instead, look at such network from a evolutionary perspective, where links are sequentially deployed at each time step Bedogne and Rodgers [2], Hoppe and Rodgers [19]. e paper contributes to give an analytical description of a incremental formation of hidden variable networks with factorizable linking probability.…”

Measuring the systemic importance of interconnected industries in the world economic system

“…Exploring and understanding the connectedness of an economic system is of paramount importance for explaining economic dynamics and systemic risk. Studying the economic dynamics of an economic system by describing its topology and exploring how it evolves over time is the prelude to assessing systemic risk (Chinazzi et al , 2013; Minoiu and Reyes, 2013; Hoppe and Rodgers, 2015). The network-related literature on the world economic system can be classified into two branches.…”

“…However, the literature on the WTW contains many results that are not without controversy. The reasons for these discrepancies relate to the choice of data source and the different approaches that are used (Hoppe and Rodgers, 2015).…”