HighlightsThis paper explores the World Trade using the Network Analysis and introduces the reader to some of the techniques used to visualize, calculate and synthetically represent network trade data. The paper shows different visualizations of the network and describe its topological properties, producing and discussing some of the commonly used Network's statistics, and presenting some specific topics. All in all, this paper shows that Network Analysis is a useful tool to describe bilateral trade relations among countries when interdependence matters, and when trade relations are characterized by high dimensionality and strong heterogeneity.
AbstractIn this paper we explore the BACI-CEPII database using Network Analysis. Starting from the visualization of the World Trade Network, we then define and describe the topology of the network, both in its binary version and in its weighted version, calculating and discussing some of the commonly used network's statistics. We finally discuss some specific topics that can be studied using Network Analysis and International Trade data, both at the aggregated and sectoral level. The analysis is done using multiple software (Stata, R, and Pajek). The scripts to replicate part of the analysis are included in the appendix, and can be used as an handson tutorial. Moreover,the World Trade Network local and global centrality measures, for the unweighted and the weighted version of the Network, calculated using the bilateral aggregate trade data for each country (178 in total) and each year (from 1995 to 2010,) can be downloaded from the CEPII webpage.JEL Classification: F10