2009/08/14 by Giorgio Fagiolo, Fagiolo, Giorgio
Decision Sciences · Economics, Econometrics and Finance · Physics and Astronomy · #Complex Network Analysis Techniques #FOS: Economics and business #FOS: Physical sciences #Game Theory and Applications #General Finance (q-fin.GN) #Global trade and economics #Physics and Society (physics.soc-ph) #Trading and Market Microstructure (q-fin.TR) #physics.soc-ph #q-fin.GN #q-fin.TR
paper · pdf · doi:10.48550/arxiv.0908.2086
arxiv created 2009/08/14 · openalex publication_date 2009/08/14 · arxiv updated 2009/12/01 · openalex created_date 2025/10/10 · openalex updated_date 2026/07/28
This paper begins to explore the determinants of the topological properties of the international - trade network (ITN). We fit bilateral-trade flows using a standard gravity equation to build a "residual" ITN where trade-link weights are depurated from geographical distance, size, border effects, trade agreements, and so on. We then compare the topological properties of the original and residual ITNs. We find that the residual ITN displays, unlike the original one, marked signatures of a complex system, and is characterized by a very different topological architecture. Whereas the original ITN is geographically clustered and organized around a few large-sized hubs, the residual ITN displays many small-sized but trade-oriented countries that, independently of their geographical position, either play the role of local hubs or attract large and rich countries in relatively complex trade-interaction patterns.