Dynamics of financial crises in the world trade network

Marziyeh Askari, Homayoun Shirazi () and Keivan Aghababaei Samani

Physica A: Statistical Mechanics and its Applications, 2018, vol. 501, issue C, 164-169

Abstract: A simple dynamical model is introduced to simulate the spreading of financial crises in the world trade network. In this model a directed network is constructed in which a weighted and directed link indicates the export value between two countries. The weights are subject to the change by a simple dynamical rule. The process begins with a crisis, i.e. a sudden decrease in the export value of a certain country and spreads throughout the whole network. We compare our results with the real values corresponding to the global financial crisis of 2008 and show that the results of our model are in good agreement with reality.

Keywords: World trade network; Financial crises; Complex networks (search for similar items in EconPapers)
Date: 2018
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Citations: View citations in EconPapers (8)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:phsmap:v:501:y:2018:i:c:p:164-169

DOI: 10.1016/j.physa.2018.02.153

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