Modeling complex network perturbations on resilience of the bilateral regional trade agreements

Ren Zhuoming, Wang Wan, Lin Yu and Zhao Li

Physica A: Statistical Mechanics and its Applications, 2024, vol. 655, issue C

Abstract: The resilience of cooperative relationships within a trade agreement network, when subjected to external shocks or internal disturbances, underscores the role of network structure in the robustness and adaptability of the trade agreement system. Addressing the gap in understanding the resilience of trade agreement network dynamics, this study constructs a complex network based on the bilateral regional trade agreements. By applying reciprocal dynamics to measure cooperative relationships among countries in the network, we model the impact of complex network perturbations on the resilience of bilateral regional trade agreements. Various complex network perturbations are considered, including node removal, link removal, and three orders of null models for network reshuffling, which correspond to the failure of a trade agreement, simultaneous agreement failure, and signing. Experimental findings reveal that network resilience gradually diminishes with the random removal of nodes and links. However, when nodes are removed based on their degree, removing nodes with larger degrees first proves to be more effective than the reverse. Specifically, network resilience decreases more rapidly when smaller nodes are removed. This highlights the significant contribution of countries with numerous trade agreements to the overall network resilience. In network reshuffling experiments, an increase in the order of reshuffling correlates with a gradual decrease in network resilience, ultimately converging toward real values. These findings emphasize the importance of network structure in maintaining the stability and adaptability of trade agreement systems.

Keywords: Network resilience; Complex network; Network perturbations; Bilateral regional trade agreements (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0378437124006770
Full text for ScienceDirect subscribers only. Journal offers the option of making the article available online on Science direct for a fee of $3,000

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:phsmap:v:655:y:2024:i:c:s0378437124006770

DOI: 10.1016/j.physa.2024.130168

Access Statistics for this article

Physica A: Statistical Mechanics and its Applications is currently edited by K. A. Dawson, J. O. Indekeu, H.E. Stanley and C. Tsallis

More articles in Physica A: Statistical Mechanics and its Applications from Elsevier
Bibliographic data for series maintained by Catherine Liu ().