Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/18344
Authors: 
Baskaran, Thushyanthan
Brück, Tilman
Year of Publication: 
2005
Series/Report no.: 
DIW-Diskussionspapiere 493
Abstract: 
The paper analyzes the network structure of international trade. Adapting a network approach developed in the physical sciences, we propose that international trade functions like a scale-free network. For each commodity group we calculate a characteristic parameter which reflects the structure of its trading network. We then insert this variable into an expanded gravity model to explore the effect of the network structure on the value of bilateral trade. The estimation suggests that, inter alia, globalization has reduced the value of trade per product group.
Subjects: 
networks
international trade
gravity model
JEL: 
L14
F15
F10
Document Type: 
Working Paper

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