Global Trade Imbalances: A Network Approach

Dueñas, Marco; Fagiolo, Giorgio

doi:10.1142/s0219525914500143

Cited by 12 publications

(5 citation statements)

References 38 publications

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“…Borrowing from the broad literature related to the ITN, a possible extension of this research would be to explore the determinants of the architecture of the network following traditional economic modeling 30 and null network models 31 . In addition, given the interplay and complementary of trade, migration, financial investment, and M&As flows, it would be interesting to develop a multilayer network analysis 10,18,28 . This could provide new insights on the international relations, and the movement of goods and factors of production that shape globalization.…”

Section: Discussionmentioning

confidence: 99%

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Spatio-Temporal Patterns of the International Merger and Acquisition Network

Dueñas

Mastrandrea

Barigozzi

et al. 2017

Sci Rep

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This paper analyses the world web of mergers and acquisitions (M&As) using a complex network approach. We use data of M&As to build a temporal sequence of binary and weighted-directed networks for the period 1995–2010 and 224 countries (nodes) connected according to their M&As flows (links). We study different geographical and temporal aspects of the international M&A network (IMAN), building sequences of filtered sub-networks whose links belong to specific intervals of distance or time. Given that M&As and trade are complementary ways of reaching foreign markets, we perform our analysis using statistics employed for the study of the international trade network (ITN), highlighting the similarities and differences between the ITN and the IMAN. In contrast to the ITN, the IMAN is a low density network characterized by a persistent giant component with many external nodes and low reciprocity. Clustering patterns are very heterogeneous and dynamic. High-income economies are the main acquirers and are characterized by high connectivity, implying that most countries are targets of a few acquirers. Like in the ITN, geographical distance strongly impacts the structure of the IMAN: link-weights and node degrees have a non-linear relation with distance, and an assortative pattern is present at short distances.

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Section: Discussionmentioning

confidence: 99%

“…However, both the IMAN and the ITN are characterized by highly unbalanced bilateral flows. In the ITN, developed countries have more balanced trade relationships than developing countries 28 .…”

Section: Introductionmentioning

confidence: 99%

Spatio-Temporal Patterns of the International Merger and Acquisition Network

Dueñas

Mastrandrea

Barigozzi

et al. 2017

Sci Rep

Self Cite

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“…De Benedictis & Tajoli (2011) have studied the evolution of the world trade network over time and concluded that trade integration at the world level has been increasing, except in some areas. In addition, they find that trade policies play an Fagiolo (2014), Fagiolo et al (2010)). Network analysis is also applied to the identification of a core-periphery structure.…”

Section: Literature Reviewmentioning

confidence: 98%

Assessing the Association Between Trade and Regional Trade Agreements: A Network Approach

Rahul,

Srivastava

2024

Journal of Economic Integration

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Since the 1980s, the expansion of international trade has exceeded the growth of Gross Domestic Product (GDP). Similarly, the number of Regional Trading Agreements (RTAs) 1) has risen from under 50 in the 1990s to more than 350 currently. Major players such as the US, the EU, and more recently China have increasingly used RTAs as a means of achieving economic integration. This is accompanied by the notable growth of China's imports and exports,

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“…More generally, the rising complexity and imbalances of the trade network, where some countries record large surpluses (China, Germany) and others large deficits (US, France) awake the debate on the need of a global coordinated adjustment plan involving all countries (see [19] and [20] for two recent network-related contributions on the global trade imbalances). By shrinking the size of the trade information matrix, the indirect measure can help each country to identify the trade partners with which negotiating prioritarily an adjustment plan to correct the imbalances.…”

Section: Indirect Trade Imbalance In Europementioning

confidence: 99%

Trade Integration and Trade Imbalances in the European Union: A Network Perspective

2014

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We study the ever more integrated and ever more unbalanced trade relationships between European countries. To better capture the complexity of economic networks, we propose two global measures that assess the trade integration and the trade imbalances of the European countries. These measures are the network (or indirect) counterparts to traditional (or direct) measures such as the trade-to-GDP (Gross Domestic Product) and trade deficit-to-GDP ratios. Our indirect tools account for the European inter-country trade structure and follow (i) a decomposition of the global trade flow into elementary flows that highlight the long-range dependencies between exporting and importing economies and (ii) the commute-time distance for trade integration, which measures the impact of a perturbation in the economy of a country on another country, possibly through intermediate partners by domino effect. Our application addresses the impact of the launch of the Euro. We find that the indirect imbalance measures better identify the countries ultimately bearing deficits and surpluses, by neutralizing the impact of trade transit countries, such as the Netherlands. Among others, we find that ultimate surpluses of Germany are quite concentrated in only three partners. We also show that for some countries, the direct and indirect measures of trade integration diverge, thereby revealing that these countries (e.g. Greece and Portugal) trade to a smaller extent with countries considered as central in the European Union network.

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Global Trade Imbalances: A Network Approach

Cited by 12 publications

References 38 publications

Spatio-Temporal Patterns of the International Merger and Acquisition Network

Spatio-Temporal Patterns of the International Merger and Acquisition Network

Assessing the Association Between Trade and Regional Trade Agreements: A Network Approach

Trade Integration and Trade Imbalances in the European Union: A Network Perspective

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