Reducing Trade Inequality: A Network-Based Assessment

Abstract

International trade, the network that underpins globalization, shows an extreme inequality. Despite efforts of multilateral organizations to foster a more fair world through trade agreements, it is hard to assess the effect of these changes on such a complex system. We have measured, using numerical simulation on a recently published network model, the impact of simple policies to boost trade chances among the weakest economies. Results suggest that global inequality may be reduced improving trade among low-income economies.

How does the behaviour of the core differ from the periphery? – An international trade network analysis

“…This approach chiefly allows for an investigation into how export patterns for the core differ from the periphery based on these five effects for market size and affluence. The core and periphery structure of the international trade network reflects the inequality in the global system (Garcia-Algarra et al, 2020). Low and middle income economies, often occupying peripheral positions tend to consider policy tools to promote participation in global trade and value chain activities (Flentø and Ponte, 2017;Kowalski et al, 2015;Tajoli and Felice, 2018), that could potentially generate a more fair and balanced trade network.…”

Export product quality and inclusivity in developing countries

“…An increasing attention has been being paid to the issue of “inclusive tradeˮ both in the international and domestic arenas (e.g., Bacchetta et al., 2019; Bacchetta et al., 2021; Engel et al., 2021; Garcia‐Algarra et al., 2020; Goff, 2021; In Luke & Macleod, 2019; UNCTAD, 2007; UNESCAP, 2013; WTO, 2016). The question as to what makes trade inclusive has been approached in the literature from various perspectives.…”

“…The question as to what makes trade inclusive has been approached in the literature from various perspectives. Some studies have considered trade inclusiveness from the perspective of reducing trade inequality among countries in the world, including by enhancing the participation of weakest economies (low‐income countries) in international trade (Garcia‐Algarra et al., 2020), and of making global trade inclusive for smaller sellers and firms, including small and medium size enterprises (e.g., Goff, 2021; Hui, 2019).…”

“…In fact, trade inclusivity has been approached in the literature from different perspectives. These include reducing between‐country trade inequality, including by enhancing the participation of weakest economies in international trade (Garcia‐Algarra et al., 2020), making global trade inclusive for smaller sellers and firms, including small and medium size enterprises (e.g., Goff, 2021; Hui, 2019), as well as whether the participation in international trade, notably through trade policy liberalization and trade openness, has help improve inclusive growth and development (e.g., APEC, 2015; Bacchetta et al., 2019; Dollar & Kraay, 2002; Engel et al., 2021; Kang et al., 2017; UNECLAC, 2014; UNESCAP, 2009, 2013; Winters, 2014; WTO, 2016; WTO and World Bank, 2015). None of these studies has considered the concept of “inclusivity” from the perspective of a concomitant increase in the real per capita income and reduction in within‐country income inequality and poverty.…”

Analyzing the Characteristics and Causes of Location Spatial Agglomeration of Listed Companies: An Empirical Study of China’s Yangtze River Economic Belt

“…A listed company is a market-oriented modern enterprise formed by the agglomeration of various production factors. It reflects the level of capital securitization and direct financing capacity of a particular region and, to a certain extent, represents the dominant position of a country or region in the global division of labor system and the international innovation pattern [2,3]. Affected by regional policy adjustments and changes in corporate business strategies, the location selection and distribution law of listed companies in emerging developing countries represented by China has been changed consistently in recent years.…”