Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/261340
Year of Publication: 
2022
Series/Report no.: 
BERG Working Paper Series No. 181
Publisher: 
Bamberg University, Bamberg Economic Research Group (BERG), Bamberg
Abstract: 
Using a statistical model of an evolving multiplex network, we study tie formation in global production chains within and across developed countries, their trade activities with developing economies in the intermediate goods market, and the mutual dependencies between these relationships. Our model approaches these dynamics from the perspective of individual nodes and thus identifies the driving forces behind the tie formation process. The empirical value of our approach is demonstrated by fitting the model to a panel data set from the OECD Inter-Country Input-Output Tables between 2005 and 2015. Based on these data, we find that (i) geography, two-sided heterogeneity of buyers and sellers, trade costs, as well as structural characteristics of the production network determine the formation of trade linkages between OECD country-sectors, (ii) some of these determinants have an asymmetric effect on import and export ties between OECD and non-OECD countries, and (iii) intra-OECD trade and import and export ties with non-OECD economies are mutually dependent.
Subjects: 
trade network
network formation
stochastic actor-oriented model
multiplex dynamics
input-output analysis
JEL: 
E23
F14
D57
R15
ISBN: 
978-3-949224-02-7
Document Type: 
Working Paper

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