2015/08/28 by Jesse Shore, Shore, Jesse
Economics, Econometrics and Finance · Social Sciences · #Cultural Industries and Urban Development #FOS: Computer and information sciences #FOS: Physical sciences #Global trade and economics #Physics and Society (physics.soc-ph) #Social and Information Networks (cs.SI)
paper · pdf · doi:10.48550/arxiv.1508.07272
openalex publication_date 2015/08/28 · openalex created_date 2022/10/06 · openalex updated_date 2026/07/28
Where do new markets come from? I construct a network model in which national\nmarkets are nodes and flows of recorded music between them are links and\nconduct a longitudinal analysis of the global pattern of trade in the period\n1976 to 2010. I hypothesize that new export markets are developed through a\nprocess of transitive closure in the network of international trade. When two\ncountries' markets experience the same social influences, it brings them close\nenough together for new homophilous ties to be formed. The implication is that\nconsumption of foreign products helps, not hurts, home-market producers develop\noverseas markets, but only in those countries that have a history of consuming\nthe same foreign products that were consumed in the home market. Selling in a\nmarket changes what is valued in that market, and new market formation is a\nconsequence of having social influences in common.\n